Avalanche Sets Up for Short Term Profit Opportunity

As a cryptocurrency trader or investor, you’ve likely experienced situations where a cryptocurrency's price moves indecisively between two key levels, making it difficult to assess which direction has the higher probability of success—and leaving you waiting for a clear entry signal.

That’s exactly the situation currently unfolding with AVAX. Acknowledging this indecision, we took a closer look and identified a key factor that may help resolve it.

AVAX technical analysis

AVAXUSD - 1 Day Time Frame

Looking at the broader context of AVAX’s price action, it’s important to note that the daily timeframe structure remains bearish. Why? Because, in early April, the price failed to close—with the body of the candle—below the previous lower low.

We’ve marked this level with a lower blue horizontal line on the attached chart. As a result, the last confirmed lower high (also marked with a blue line) is still intact. This indicates that any bullish movement since then likely remains part of an internal structure, rather than a full structural reversal.

Equally important are the clearly defined support and resistance zones. As regular readers of our analyses know, we aim to avoid vague or subjective interpretations. Instead, we prefer to define zones using the precise highs and lows of individual candles—a method that helps avoid the “retail trap” of imagined levels lacking technical credibility.

The resistance zone is marked in orange, while the support zone is outlined by two dark horizontal lines, carefully spaced to ensure visual clarity and non-overlap.

What will determine the next directional move? The answer may lie in the candle body. As long as the price interacts with these zones only via wicks, the zones remain intact and technically unbroken.

However, once a candle closes—with its body—beyond either zone, it may indicate a breakout or rejection and signal a structural shift. From bullish to bearish, or vice versa.

As always, liquidity levels help define the targets. A close below the support zone points to the Sell-Side Liquidity (SSL) level, while a close above the resistance zone shifts focus to the Buy-Side Liquidity (BSL) level.

In both cases, understanding and respecting candle body closures is essential for aligning your trades with the prevailing market structure.