🔍 Analysis/USDT$AVAX (Daily Frame) – Is there a chance for a rebound?
📌 The trend has been clearly downward since the peak at around $70.
The price is moving within a descending channel and has not broken it yet.
📌 The strong demand zone at $17 - $18 currently provides support.
✅ Current demand zone (strong support):
Between $16.5 - $18.5 where previous rebounds occurred.
The price is currently reacting with this area, which may lead to a rebound.
🔻 Nearby supply zone (strong resistance):
Between $45 - $55 where significant selling pressure occurred.
Any strong rise may face resistance there.
📈 Positive signals:
The SQZMOM indicator shows positive divergence (the price is falling while the indicator is rising).
The price is approaching a strong demand area, which may increase the likelihood of a rebound.
Selling momentum has started to weaken.
📉 Negative signals:
The overall trend is still downward, and the blue trend has not been broken.
There is no strong breakout of resistance levels, indicating continued risk.
If it breaks $16.5 and closes below it, we may see a drop to $14 or lower.
📌 Potential scenarios
🔹 Positive scenario (upward rebound 🚀):
Entry: After breaking the downward trend and closing above $20.
First target: $25
Second target: $30
Stop loss: Daily close below $16.5.
🔻 Negative scenario (continuation of the decline 🔻):
If it breaks $16.5, the next support will be $14.
At that point, strong reversal signals should be awaited before considering buying.