AVAX is currently trading inside an ascending channel, showing a bullish structure — but the chart suggests that bulls could be walking into a potential trap if caution is not exercised.
🟢 Key Zones:
Strong Demand Zone:
The $20.20–$20.60 zone is acting as a critical support level, where buyers have consistently stepped in. As long as price stays above this zone, the bullish bias remains valid.Support Level:
Around $21.00–$21.20, acting as minor support within the channel. A break below could send the price back toward the demand zone.Moderate Resistance:
Seen near $22.40. This is the first barrier bulls need to break cleanly for momentum to continue.Strong Resistance:
Near $23.00, this is the major hurdle. Without significant volume, a rejection from this level is highly possible.
📈 Chart Structure:
The price is respecting both ascending resistance and support, indicating a healthy uptrend.
Multiple rejections from the upper channel boundary indicate supply pressure.
The expected path shows short-term fluctuations, possibly forming higher lows before retesting resistance.
⚠️ Bearish Scenario:
Bullish Invalidation:
If AVAX closes below the strong demand zone ($20.20), bullish momentum would be considered broken. This could trigger a move toward $19.60 or lower.
🔄 Momentum Indicator:
The Stochastic Oscillator is nearing the overbought zone, hinting at a possible short-term pullback or consolidation.
✅ Conclusion:
AVAX is currently in a bullish structure but faces layered resistance ahead.
If you're already in — manage risk carefully.
If you're waiting — a bounce from support or demand zone offers better R:R than chasing here.
A break below $20.20 flips this chart into bearish territory.
🧠 Trade with structure, not emotion.
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