AVAX’s $16 support holds, but challenges ahead for long-term bulls

• Avalanche again tested the $ 16 support zone and bounced off above.
• Despite the reflection and the growing activity of the on-seams, long-term bulls may not be rewarded in the coming weeks.

Avalanche [AVAX] has been in a descending trend since June 11th. It dropped by 26% in less than two weeks, but on Monday began to recover with 9.26% of the rally.

It has recently been reported smart money Investors had a profit and kept their Avax.

Meanwhile, retail investors began to do business and derivative traders started betting in short positions.

The activity on the chain has begun to increase considerably in the last few days. It was not in April, but the increase in activity was encouraging.

The 7 -day change of active addresses was 204%at the time of writing.

Permanent activity could assess the demand for an avalanche and potentially help its recovery. The price event also indicated a potential bull conversion.

Profits for traders?

The range (white) has expanded from $ 16 to $ 22.9, with its medium level to $ 19.5. Recent losses have noticed repeated testing last year to the extent that were previously defended as support in April and March.

The bulls have won the battle again and Avax seemed to climb up to the middle -class resistance of $ 19.6.

However, technical indicators remained bear. The amazing oscillator continued to reflect the bear dynamics and was low under his early May.

This indicated that the sales pressure had the upper hand.

If the volume of everyday trading remains below average in the coming days when the avalanche moves towards $ 19.5, traders should prepare for rejection when middle class resistance.

While the 1-day chart showed the range and potential for switching to $ 22.9, it should be acknowledged that Avalanche traded a long journey south of the place where it was in December 2024.

A decline from $ 54 in December to $ 18.1 at the time of writing was a price drop of 66.3% in six months.

Global in/outside the metric of money showed that 65.95% of the holders were out of money and 27.18% was for money. This meant that there were a large number of holders willing to leave the Break-Event market.

Although the avalanche can gather, the number of sellers willing to leave the market would remain high, because many were now losing losses.

Given the weak sentiment around most altcoins, it seemed that avalanche investors should remain cautious until Bitcoin dominance began to dive and capital alternations to altcoins began to take place.