AVAX: The Calm Before the Storm?

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Avalanche’s Price Predicament: A Tale of Woe and Volatility 🤯

<a href="https://usdaed.com/avax-usd/">AVAX</a>: The Calm Before the Storm?

As I sit here, sipping my tea and pondering the mysteries of the cryptocurrency universe, I am reminded of the eternal struggle of Avalanche (AVAX) to break free from the shackles of its range formation. 🚀

  • The demand for AVAX remains strong, but the momentum has slowed to a crawl, like a tired old man trudging through the snow. ❄️
  • The bulls, once so full of hope and vigor, now seem to be stuck in the mud, unable to make a clean breakout. 🐃

But fear not, dear reader, for the demand for AVAX is still high, and the selling pressure is minimal. The altcoin is still in an uptrend, but its momentum has stalled, like a car running out of gas on a deserted highway. 🚗

And then, of course, there is the specter of Bitcoin (BTC) looming in the background, waiting to pounce and send the entire market into a tailspin. 🌪️

On the 1-day chart, a range formation almost 3 months old is visible, like a ghostly apparition haunting the markets. Marked in white, the range reaches from $16 to $22.9, a vast and unforgiving expanse. 🌌

In May, the mid-range level at $19.5 served as a launchpad for the bulls, sending AVAX prices rocketing higher to $26, a 32.5% gain in three days. But alas, the bulls were stalled in this region, like a group of tourists lost in a foreign city. 🗺️

At press time, the same area acted as a supply zone, making it difficult for prices to advance higher. The A/D indicator continued to trend higher in May, but AVAX fell just under the range highs, like a ship running aground on a rocky shore. 🚢

The MACD captured the shift in momentum in the market, forming a bearish crossover and heading toward the zero line, indicating weakened bullishness. 📉

Clues from the Avalanche Liquidation Heatmap

The 3-month liquidation heatmap showed that the Avalanche price dip might go deeper, like a diver plunging into the depths of the ocean. A buildup of liquidity was seen at $21.5 and $21, like a gathering storm on the horizon. ⛈️

The market structure on the 1-day chart remains bullish, but a session close below $22 could trigger a bearish shift, like a switch being flipped. 🔄

If that happens, Avalanche may face a deeper correction, with $19 acting as a key level due to its high concentration of liquidation orders, potentially pulling the price lower, like a magnet attracting metal. 🔋

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2025-05-26 11:07