Key Insights:
- Avalanche (AVAX) respected key retracement levels and formed bullish patterns but risked a pullback if $22.200 support failed.
- The token showed a sharp rise in speculative trading, with futures volume outweighing spot activity, signaling fragile market strength.
- AVAX faced heavy liquidation clusters between $22.5 and $23.0, with volatility likely to stay elevated around current levels.
AVAX price prediction recently showed a steady upward movement. It rose from a low of $19.537 to a high of around $23. The price also respected key retracement levels, finding support at $21.290. It matched the 50% retracement and $20.877, which aligned with the 61.8% retracement.
AVAX price broke above the 23.6% retracement level at $22.216, indicating strong buying strength. The token hovered around $22.339, but its upward momentum began to slow. As a result, selling pressure started to build.
An ascending trendline appeared, often suggesting the trend could continue. However, it warned of a possible drop if the support weakened. The lower line of this channel, near $22.200, could serve as immediate support.
If the price falls below this level, it might return to $21.704. If sellers remain strong, a more profound decline to $21.290 could follow.
If buyers defend this support, AVAX price prediction suggests a possible retest of the $23.043 high. A breakout to even higher prices could follow if bullish momentum strengthens.
The chart also showed a double-bottom pattern, which usually signaled further gains. If buying strength continues, AVAX might break above $23.00. However, a failure to stay above $22.200 could weaken this pattern and lead to a sharper fall.
Meanwhile, the Volatility Index stood slightly lower than the price itself, suggesting less price movement in the short term.
If volatility increased during the drop, sharp moves towards $21.290 or even $20.877 might follow. AVAX’s next direction depended heavily on its reaction around the $22.00 zone.
AVAX Price Prediction: Market at a Critical Decision Point
The ratio between AVAX’s perpetual futures and spot volumes rose sharply above 6.0. This showed a rise in speculative trading near $22.00.
Similar spikes have occurred before significant price drops, like when AVAX fell from over $55.00. When writing, spot volumes remained much lower than futures volumes, suggesting weak real buying interest.
If the ratio remains high while the token hovers around $22.00, AVAX price prediction suggests potential risks of sharp declines. Long position selloffs could trigger even deeper drops if selling pressure intensifies.
However, if spot volumes picked up and the ratio fell toward 3.0, AVAX could find more support and aim for $30.00. Trading volumes in perpetual futures were previously high during big market swings but recently showed more cautious behavior.
If futures volumes rose again without real spot support, a false breakout near $25.00 might have occurred. AVAX recovered from its March low of $16.00. However, AVAX price prediction suggests that its reliance on borrowed trades over real buying could limit further gains.
This leaves the market at a crucial decision point, where buying pressure must strengthen for sustained growth.
Liquidation Map Insights and Future Expectations
Still, the AVAX liquidation map showed that the price at $22.3 sat at a critical crossroads. A large group of long liquidation orders stood between $22.5 and $23.0. This suggested that any upward move could trigger strong selling from traders who had borrowed too much.
If AVAX pushes above $23.0 with strength, it could clear key positions and gain momentum. This breakout might open a path toward $24.0 and $25.0, where liquidation pressures are lower.
On the downside, a build-up of short liquidation orders stretched from $21.5 to $20.0. A drop below $22.0 might cause faster selling. However, if the price rebounds from the $21.5 zone, a short squeeze could force short sellers to exit.
Moving ahead, this could drive the AVAX price upward quickly. The chart also showed that many traders used 25x leverage. This suggested that aggressive, high-risk trades controlled the market.
Price swings around the $22.0 to $23.0 range might stay strong as both long and short liquidation pressures remained close by.