$AVAX Traders Shaken: Massive Long Liquidation at $23.36 Signals Potential Reversal
The Avalanche market just witnessed a significant long liquidation worth $33,108 at the critical level of $23.36. This shakeout flushed out over-leveraged positions, often a precursor to either a deeper correction or a strong bounce.
Technical Analysis:
After the liquidation at $23.36, $AVAX seems to be approaching a crucial decision point. Liquidity has been absorbed, and we may now see volatility pick up in either direction. Here's a detailed trading setup based on current price action and sentiment:
Buy Zone:
$22.60 to $23.40
This is the ideal re-entry zone where demand may step in again after the liquidation purge. It aligns with previous support levels and liquidity grabs.
Target 1: $24.80
Target 2: $26.40
Target 3: $28.00
Each target marks key resistance zones and Fibonacci retracement levels from the recent downtrend.
Stop Loss:
$21.80
Placed just below the local swing low, this stop loss protects against extended downside while giving the trade room to breathe.
Final Thoughts:
The $33K liquidation event is not just a number—it's a signal. Smart money could be loading in the shadows while retail gets shaken out. Watch the $22.60–$23.40 range closely. If held, $AVAX could be setting up for a sharp rebound.
Hold your ground, respect your plan, and trade with discipline.