AVAX Analysis: Key Levels and Trend Outlook 2024.12.29
2024-12-29
Category: None

Hello, this is Greedy All-Day.
Today’s analysis focuses on AVAX (Avalanche).

Daily Chart Analysis



Looking at the daily chart, AVAX is testing critical resistance and support levels.

Resistance Zone:

The green box zone between 60 and 65.5 represents a strong resistance area.
The recent rally was rejected near the 60 level, indicating significant selling pressure in this zone.
For AVAX to confirm a bullish continuation or aim for a new all-time high, it needs to break above and stabilize above 65.5.
A conservative entry point would be after the price holds above 65.5, as it has faced three major rejections at this level. If this resistance is broken, there is a high probability of reaching the previous high or even higher levels.

Support Zone:

On the downside, the blue box zone around 27 is critical.
Historically, this level has acted as strong support, even during sharp declines.
If 27 fails, AVAX is likely to break below the red box, which would signify a clear breakdown of the short-term ascending trendline and trigger additional selling pressure.

Downside Target:

A break below 27 could lead to a potential 28% drop, as the market would enter a strong bearish phase due to the lack of support below this level.

Historical Comparison



AVAX’s current price action is reminiscent of a mirror image (decalcomania) from early 2024.

Similar patterns can be observed in the past data, with AVAX hovering below the Ichimoku Cloud and facing resistance at the daily 20 EMA and 60 EMA.
If a death cross occurs in the current setup, it could trigger another sharp decline, similar to the one seen in early 2024.

Conclusion

AVAX is at a critical juncture:

Bullish Scenario: A breakout above 65.5 and stabilization above this level could pave the way for a strong rally to the previous high or beyond.

Bearish Scenario: A breakdown below 27 could lead to a significant decline, potentially triggering a 28% drop.

For now, cautious trading is advised, with close monitoring of key levels like 65.5 and 27. Let’s trade wisely and stay prepared for both opportunities and risks. 🚀