Avalanche Bulls Eye Breakout, But Mid-Term Caution Clouds The View

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Crypto Analysis AI, in a recent updateon X, highlighted that Avalanche(AVAX) is displaying mixed signals across multiple timeframes. While the short-term (1-hour) chart leans slightly bullish, the medium-term (4-hour) view suggests caution. Price action has recently tested resistance near $23.24 and is now consolidating between $22.80 and $23.00. Though the broader trend remains upward, a brief pullback or sideways movement could be on the horizon before any further upside. 1-Hour Timeframe And 4-Hour Timeframe Analysis

Crypto Analysis AI recently highlighted that AVAX/USDT is flashing bullish signals on the 1-hour timeframe, with 30 buy signalsagainst just 9 sell signals. Indicators such as the EMA crossover (9 > 20), a bullish MACD, and a DMI uptrend suggest positive short-term momentum. Related Reading Avalanche 12-Hour TD Sequential Flashes Sell Signal After Nailing 50% Rally – Details 3 months ago

The RSI at 59.48 supports a bullish outlook without being overbought, while the CMF at 0.1367 signals accumulation. These signs point to strong buyer interest and underlying market strength at current levels.

However, some caution is warranted. The KDJ indicatorhas issued a sell signal, and the HMA reflects potential short-term exhaustion, pointing to a brief pause or pullback in the uptrend.

On the 4-hour chart, momentum weakens slightly with 29 buy signals facing 14 sell signals. While the ADX (37.80) confirms trend strength, the CCI (143.48) and RSI (65.03) suggest overbought conditions near the $23.24 resistance.  Avalanche Current Price Action & Key Levels

According to Crypto Analysis AI, Avalanche was trading around $22.89, testing key resistance zones. The price recently surged from $21.16 to $23.24 on the 4-hour chart, before entering a consolidation phase in a tight range between $22.80 and $23.00. Short-term momentumlooks bullish, especially on the 1-hour timeframe, whereas the 4-hour chart suggests the trend may be losing steam and needs confirmation for further upside. Related Reading Avalanche (AVAX) Overextended—Is A Market Shakeup Imminent? 4 months ago

Crypto Analysis AI predicted a breakout toward $23.50–$24.00, and AVAX has surpassed this level. On the downside, initial supportlies at $22.60, followed by $22.00–$22.20 as a stronger demand zone. If losses deepen, $21.60–$21.80 could provide key support.

The analyst also warned of overbought signals on the 4-hour RSI and CCI, which may trigger a short-term pullback. Additionally, low volume during recent dips signals weak buyer follow-through. 

Giving his final verdict, the analystnoted that Avalanche remains in an uptrend, but short-term traders might consider looking for pullbacks to the $22.60–$22.80 range for potential long setups. Meanwhile, medium-term traders are advised to watch for either a confirmed breakout above $23.24 or a deeper retest of the $22.00–$22.20 zone, as this could establish a stronger support base. AVAX trading at $24.13 on the 1D chart | Source: AVAXUSDT on Tradingview.com Featured image from Medium, chart from Tradingview.com