Avalanche Price Growth Expected

In today's technical analysis, we focus on Avalanche, one of the largest cryptocurrencies by market capitalization. Although the price has been in a bearish market structure for several months, recent developments hint at a possible reversal.

This presents traders with an opportunity to get in early before the external bearish structure breaks.

Daily time frame analysis

AVAXUSD - 1 Day Time Frame

The current bearish structure is accompanied by an internal bullish trend, creating the potential for an initial buying opportunity. Our trading model activated in mid-September, but the price has yet to generate a strong enough movement to break the external bearish structure.

The corrective move brought the price down to the Order Block, a critical technical level signaling a potential shift from bearish to bullish price action.

On the daily timeframe, a key resistance zone is also visible. This zone will act as confirmation for a buy position. If the price closes above the upper resistance level on the daily chart, traders can enter buy positions, placing a stop-loss order below a potential internal higher low, as shown on the attached chart.

The take-profit target should be set at the level of buy-side liquidity.

Weekly time frame analysis

AVAXUSD - 1 Week Time Frame

When examining the weekly timeframe, it's important to observe how the price behaves at the nearest support zone. If the buying scenario is confirmed on the daily timeframe, the price should not close below the lower boundary of the blue support zone on the weekly chart.

Should the price close below this level, traders may want to consider selling off part of their position.