Within technical analysis price movements and support-resistance zones develop a crucial association for market assessment. $AVAX displayed a perfect example throughout last week about how sudden market sentiment shifts disregard local technical expectations. The asset first dropped until it hit its support area but future price movement assumed an upward pattern provided that buying volume returned to the market. The market moved through the identified reversal zone yet generated a considerably larger price decline.
Market sentiment and momentum proved essential forces that dictated market outcomes when they shifted in this direction. Truncated downward movements can override proven support areas which shows that both time and rate of price changes hold the same analytical weight as equilibrium levels. Market participants need to adopt caution because such periods often accompany indications of trend changes or broader ecosystem fluctuations.
Support and resistance analysis includes a behavioral dimension as part of its evaluation. Market zones become stronger by repeated use but lose power if damaged during moments of increased pressure until fresh support zones emerge. It is essential to keep prices above the orange highlight area at this time. Price remaining above this region continues to increase the possibilities for an upward movement toward upper resistance zones.
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