AVAX Market Analysis – Bullish Momentum Towards Key Resistance Levels
Avalanche (AVAX) has entered a critical resistance zone between $25 and $42, a range discussed over recent weeks. Price action aligns with two potential Elliott Wave scenarios:
1. Blue Scenario (Bearish Correction):
AVAX could be forming an ABC corrective wave to the upside as part of a larger Wave 2 retracement.
Resistance is expected near $42.
A breakdown after this level could initiate a trend reversal.
Entry (Short Idea): Wait for rejection near $42 with a strong bearish signal.
Target: $25
Stop Loss: $44
2. Yellow Scenario (Bullish Impulse):
If AVAX breaks above $42.20 decisively, this could indicate a shift to a Wave 1 bullish impulse, targeting levels up to $89 in the coming weeks.
Current move shows potential for 5-wave formation, indicating bullish continuation.
Entry (Long Idea): Break and close above $42.20 with volume.
Target: $89
Stop Loss: $38
Current View:
Short-term momentum remains bullish.
Watch for whether the current rally shapes up as a 3-wave or 5-wave structure, which will help confirm whether the move is corrective or impulsive.
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