Avalanche’s (AVAX) recent pullback presents a potential long position opportunity with a 12% gain. Despite lagging behind major tokens with triple-digit YTD returns, AVAX remains one of the top 100 tokens by market cap. A move above $60 could push AVAX toward $100, revisiting its 2021 highs.
📊 Short-Term Support Levels in Focus
On the 4-hour chart, AVAX is nearing key short-term support levels. The trendline support and 50-day EMA have consistently cushioned price dips since late November. A bounce at $49.7 offers a strong long entry, with a stop-loss below $49.8 to manage risk.
📈 Momentum Signals a Possible Reversal
The Stochastic RSI indicates oversold conditions, hinting at a price reversal. Additionally, the Chaikin Money Flow (CMF) shows above-average inflows, supporting a bullish rebound. A liquidity sweep below $50 further strengthens this projection.
🔄 Liquidity Hunt Driving Upside Targets
AVAX recently tapped liquidity at $52 and dipped below $50. The next target lies near $54-$55, where leveraged short positions are building. This aligns with the long idea, with a potential 12% gain if AVAX rebounds from $49.8.
⚠️ Key Levels to Watch
A drop below $48 would invalidate the bullish outlook, while a rebound above $54 could signal further upside momentum. Keep an eye on liquidity dynamics to capitalize on AVAX’s recovery potential.
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