$AVAX After a deep decline on the daily chart, a clear breakout pullback structure has formed on the 4H chart, with the price stabilizing above EMA20 and testing previous high resistance.
🎯 Direction: Go long
🎯 Entry: 8.82 - 8.88
🛑 Stop loss: 8.68 (if it breaks below the previous 4H candle low and EMA20 support, the logic is invalid)
🚀 Target 1: 9.25 (previous daily level small platform resistance)
🚀 Target 2: 9.60 (Fibonacci 0.382 retracement level and near EMA50)
Market Analysis: The price rebounded from around the low of 8.30, with four consecutive 4H bullish candles breaking through the downward trend line and EMA20 resistance. The latest candle is slightly oscillating near the previous high of 8.84, indicating a healthy pullback.
Core Logic: 1. Data Resonance: The funding rate is only 0.0036%, with no overheating bubble; position volume is stable, with no short squeeze; bid depth in the 8.88-8.89 range is exceptionally thick, indicating institutional support. 2. Price Action: After the breakout, there is a volume decrease in the pullback, and sell orders (Asks) are sparse above 8.90, making the resistance easier to break. RSI (50.7) is in a healthy neutral zone, with upward potential. 3. Market Psychology: After consecutive daily overselling, sustained buying absorption has appeared for the first time, with short strength waning. The current pullback is a standard healthy reset after the breakout, aimed at clearing floating stocks.
Trade here 👇$AVAX
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