$AVAX
🚨 Avalanche (AVAX) Analysis: Oversold Signals Hint at Potential Rebound 🚨
Avalanche (AVAX) has recently undergone a significant correction, shedding 16% from its April peak and approaching a crucial support zone near $18. Historically, this level has acted as a strong support, and current technical indicators suggest a potential reversal.
For instance, the Relative Strength Index (RSI) on the 4-hour chart has formed a bullish divergence, indicating that selling momentum is weakening. Moreover, the price is consolidating above the previous swing low of $18.28, aligning with the base of the current support structure.
To confirm a bullish continuation, AVAX needs to reclaim the $22–$24 range, with a breakout above $24 confirming the next upward leg. Volume remains relatively light, so a surge in buying interest would strengthen the bullish case. On the other hand, if the support around $18.30 fails, the next level to watch is the March low at $14.37, which would invalidate the short-term bullish outlook.