Analyzing $AVAX's Struggle in the $51-$56 RangeThe current price of Avalanche ( CRYPTOCAP:AVAX ) is poised to face resistance as it approaches the $51 to $56 range, which has been a challenging hurdle for the past three weeks. Adding to the concern, a bearish divergence identified on the weekly chart indicates that a correction may be imminent.
However, investors looking for long-term gains may find value in the immediate support level between $45 to $50, as it presents an ideal opportunity to accumulate. It is worth noting that a shift in the $39 support floor to a resistance level could invalidate the bullish Analysis. Additionally, the recent slowdown of Bitcoin and associated sell signals may further impact CRYPTOCAP:AVAX 's short-term price.
CRYPTOCAP:AVAX has recently exhibited a significant increase, surpassing the psychological threshold of $40 in late December. However, the price rebalanced in the range of $22 to $31, thereby leading to an accumulation zone. As a result of this accumulation, the price of CRYPTOCAP:AVAX has surged by 140% in just under two months.
In this instance, the Avalanche price has already declined by 19% from the recent local top of $65, and more losses are anticipated. The first accumulation zone, extending from $45 to $50, represents the immediate imbalance, which is roughly 5% to 10% below the current level of $53.
If history repeats itself, a dip in this zone may generate enough buying pressure to break through the $51 to $56 resistance zone and test the next significant hurdle at $80. This level represents the midpoint of the previous bearish market for $AVAX.
