Avalanche (AVAX) Heads for a Strong Rebound
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Summary:
- AVAX remains under pressure and is trading below the 9-day EMA.
- Technical indicators suggest further short-term downside is possible.
- Continued accumulation may support a strong rebound toward $70–$80.
While the Avalanche market may appear unattractive at the moment, indicators such as money inflow suggest that the token is currently being accumulated. Although prices may decline slightly further, an upward rebound appears increasingly likely in the near term.
Studying the Avalanche Market on the Daily Chart
On the daily chart, price action is trading near its lowest level since early June. Recently, the market has shown signs of recovery, although bullish momentum remains weak. Despite the slight upward movement, price action remains below the 9-day Exponential Moving Average (EMA).
The current session’s candle reflects modest gains. Meanwhile, the Stochastic Relative Strength Index (SRSI) has risen into the overbought region, suggesting that momentum remains mixed.
Avalanche May Slip Lower Before Rebounding
At present, price action in the AVAX market remains under pressure. As a result, the market could experience further downside before a meaningful recovery begins. The ongoing session shows an attempt to reclaim key technical levels; however, bullish momentum remains insufficient, with trading still below the 9-day EMA.
In addition, the SRSI indicator remains in overbought territory, while its lead line has begun to flatten and curve downward, suggesting that bearish pressure is still influencing price action. This trend is occurring even as accumulation continues in the background.
Cash Inflow into the Avalanche Market Maintains a Latent Effect
Despite continued buying activity, AVAX price action remains bearish in the short term, as confirmed by current technical indicators. Consequently, traders may anticipate additional downside movement before a reversal occurs.
However, the sustained inflow of capital into the market suggests that a bottom may be forming. If accumulation continues, it could lay the foundation for a strong bullish rebound, potentially driving AVAX toward $70 and even $80 over the longer term.
