- Avalanche has increased by 4.3% before coming across some resistance at $22.87.
- The TD Sequential indicator suggests a possible price reversal after reaching $22.87.
- On-chain data shows how short positions correlate with AVAX’s high price changes.
Avalanche made a notable price surge, moving from $21.94 to $22.87, a 4.3% increase, on March 26, 2025. However, market analysis using the TD Sequential indicator suggests that AVAX may face a reversal. Two critical “9” signals marked the charts: one in green at $21.94, indicating a strong buy, and one in red at $22.87, suggesting a sell signal. By the observation of such signals, it can be argued that this is a very early indicator of a shift in market mood.
Source: X
Market Sentiment Shifts with Resistance Levels
As AVAX’s price nears the $23 resistance level, the market sentiment has become more cautious. The price’s 2.63% drop from its peak indicates a potential pullback. If the $23 resistance is not broken, the price could retreat to the next support zone around $22.50. Because it is speculative prices, most futures brokers would recommend keeping close to their trading positions.
According to analyst Ali, the TD Sequential indicator effectively forecasts short-term price trends. Thus, traders should observe the price action around these resistance and support levels to ascertain the next move for AVAX.
Related: VanEck’s Avalanche ETF Registration Could Drive AVAX Growth
On-Chain Data Fits In With The Market Movements
Coinglass’s chart offers additional insights into AVAX’s market positioning. The information presented shows a strong correlation between the token’s price (yellow line) and market sentiment, with long positions (green bars) and short positions (red bars) fluctuating aggressively. In December 2024, as the token reached over $50, long positions surged, while short positions remained relatively low.
In early 2025, however, the price dropped below $25 as short positions went up, thus signaling bearish sentiment. This was followed by a pullback in the price. The short positions peaked in late February, going hand in hand with a decline in AVAX’s price, before the market saw a recovery, pushing the price back to the $30 range by March 24. This rebound suggests that while short positions have driven down the price, the market has shown resilience.
Source: Coinglass
Both Ali’s analysis and CoinGlass on-chain data highlight the critical support and resistance levels for AVAX. Traders should be extra careful and keep monitoring these levels on the lookout for price action.
