The recent pullback in the cryptocurrency market has affected most major tokens, including Avalanche (AVAX). This article explores the current situation and possible developments.
Overview of the Current Cryptocurrency Market Situation
The cryptocurrency market has experienced a sharp decline, causing the prices of major tokens to drop. Bitcoin (BTC) fell to around $105,000, while Ethereum (ETH) dropped to $2,600. These changes also negatively impacted many altcoins, including Avalanche (AVAX), which recorded a weekly decline of over 9%.
The 'Power of 3' Phases for AVAX
On the 15-minute chart, AVAX shows signs of a classic 'Power of 3' structure, consisting of three phases: accumulation, manipulation, and expansion.
Accumulation: During this phase, AVAX traded within a range of $21.61 - $21.12, indicating liquidity accumulation before the next directional moves.
Manipulation: A sudden breakdown occurred, with the price dropping below the accumulation zone to $20.72, triggering panic among traders. However, the price quickly rebounded, indicating a possible false breakout.
Future Prospects for AVAX
If AVAX manages to reclaim the $21.12 level, it may indicate the transition into the expansion phase. A confirmed breakout above the upper range at $21.61 would strengthen the bullish case. The projected target could reach $22.55, indicating a potential rise of 7.71% from current levels. However, AVAX must hold the support level at $20.72 to sustain this reversal setup.
In the current conditions, the cryptocurrency market may view AVAX as an interesting subject for analysis and observation. It's important to consider support levels and potential transitions between phases based on market behavior.
