AVAX, June 3, 2025. Short-term analysis (1–3 days) with weekly context.
Avalanche ($AVAX ) is currently trading around $21.22, exhibiting a tight consolidation pattern. The price action suggests a potential breakout or breakdown, depending on upcoming market movements.
Market Structure and Technical Overview
After a period of consolidation, AVAX has been hovering between $20.00 and $22.50. The price is facing resistance at $22.50 and support at $20.00.
Key levels:
Resistance: $22.50 – $23.00
Support: $20.00 – $19.50
Indicators:
EMA (50/100/200): The price is below the 50-day EMA, indicating short-term bearish momentum.
RSI (D1): Currently at 45, suggesting neutral momentum.
MACD (H4): Shows a bearish crossover, indicating potential downward movement.
Smart Money Zones and Intentions
The $22.50 – $23.00 range has been a significant area of interest, with multiple rejections in the past. A decisive break above this zone could trigger stop-loss orders from short positions, leading to increased buying pressure.
On the downside, the $20.00 – $19.50 support zone has held firm, indicating accumulation by larger players. A drop below this level might suggest a shift in market sentiment.
Institutional Flows and Market Context
ETF Inflows: Recent delays in ETF approvals have impacted market sentiment, contributing to AVAX's current price consolidation.
Exchange Supply: The supply of Avalanche ($AVAX ) on exchanges remains stable, suggesting that investors are holding their positions.
Near-Term Scenarios to Monitor
If Avalanche ($AVAX ) breaks above the $22.50 – $23.00 resistance zone with strong volume, it could pave the way for a move towards $25.00 and potentially $27.00.
Conversely, if the price fails to break this resistance and falls below the $20.00 support, it may indicate a bearish trend, with the next support level around $18.50.
Conclusion
Avalanche is at a critical juncture. A breakout above $23.00 could signal a continuation of the bullish trend, while a drop below $20.00 might suggest a reversal. Monitoring these key levels and market indicators will be essential in the coming days.
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