AVAX: Reaching Key Resistance – High Win-Rate Opportunity for Trend-Following Short Positions

In line with the short-term recovery bounce projected in our previous analysis, AVAX has officially returned to test a pivotal technical resistance zone on the daily chart. Given that the broader crypto market remains relatively stagnant and the market leader BTC has yet to display any definitive signs of a structural reversal, the long-term bearish momentum continues to be the dominant force. Consequently, hunting for short setups that align with the primary downtrend offers a significantly higher probability of success.
According to the visual data from chart, the previous steep downward impulse established a highly resilient psychological barrier. The recent upward move was merely a technical relief rally designed to retest the overhead supply. As the price tags the highlighted blue resistance zone around the $6.80 mark, buying pressure immediately shows signs of exhaustion, leaving noticeable upper wicks behind.
This price action confirms that the bears are successfully defending their territory and stand ready to trigger another downward leg. The most optimal strategy right now is to initiate a Short position within this resistance cluster, positioning a tight stop-loss just above the technical barrier to minimize risk, while targeting the next major support floor down near $5.00.
Disclaimer: This is not financial advice, DYOR. $A $AVAX #CirclePlunges17%