Avalanche (AVAX) is showing signs of a potential bearish phase as price approaches $9.72, a key 4-hour order block coinciding with daily resistance.
According to market observations shared byCrypto Patel, the price recently swept above previous highs, nearing $10.34, in what appears to be a liquidity grab.
This move allowed stop orders and breakout buyers to be triggered, but the market struggled to maintain upward momentum.
The area around the $9.72 price mark is a good support area at the moment, implying that large sellers are protecting the area at the moment.
Source: X
If the market continues to test the area, it could be a sign of a potential move down, according to the analysts, who explain that a brief test of the order block could lead to a bearish move, allowing AVAX to target sell-side liquidity areas below the current price.
Also Read: Avalanche (AVAX) Eyes $10.34 Break as Grayscale ETF Debuts
Avalanche (AVAX ) Faces Initial Liquidity Test at $8.69
Below the level of resistance at $9.72, there are a few key liquidity points for AVAX. The first one is located at around $8.69, where stop losses on long positions are likely to push the price down in case the selling pressure remains strong.
The next key level in case of further downward movement is located at $8.18, which is likely to show a larger liquidity pool.
If the selling continues, the main downside objective is the previous month’s low at around $7.55. This would represent the full cycle of liquidity, with the highs and lows of the larger trading range being cleared out.
In most cases, it is a natural transition between accumulation and distribution, allowing large traders to buy at favorable prices.
Grayscale Expands AVAX Exposure with ETF Launch
Meanwhile, the Nasdaq listed the new Avalanche Staking ETF, created by Grayscale Investments, under the symbol GAVA. This ETF will allow investors to gain exposure to AVAX while earning rewards through the network’s Proof of Stake consensus algorithm.
GAVA began trading as a private placement in August 2024, becoming the latest addition to the company’s portfolio of over 40 digital asset investment vehicles.
According to Grayscale’s Senior VP of ETFs, Inkoo Kang, the ETF enables investors to gain exposure to a leading smart contract platform in a regulated environment and through Grayscale’s resources and research.
The special architecture of Avalanche separates digital asset transfers, smart contracts, and validator operations across multiple chains to deliver scalability and customizable blockchain configurations to developers and businesses alike.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Is Avalanche Ready to Rally? AVAX SuperTrend Flip Signals Bullish Reversal
