#Avalanche could test and bounce from key support as technical indicators show oversold conditions, and a potential for volatility breakout. On the daily AVAX chart, the technical indicators suggest a continuation of the bearish trend with some signs of potential short-term consolidation. The price is currently trading just above the lower Bollinger Band, indicating that Avalanche is in an oversold condition. This is a positive sign in the long term. Notably, the contraction of the bands suggests that the market is in a period of consolidation with lower volatility. Typically, after this kind of narrowing, we can expect a volatility breakout, where the price makes a sharp move in one direction. Further, the MACD is showing a bearish crossover, with the MACD line below the signal line. This suggests that momentum is still to the downside, and there is no immediate sign of reversal. The histogram is negative and shrinking, indicating that the selling pressure is easing, but it’s not yet turning bullish.  If the price breaks upward above the $16.76, representing the middle band resistance, it may indicate a reversal or recovery. Conversely, if the price breaks downward below the $14.18 support, placed at the lower band, this could signify a continuation of the bearish trend. Meanwhile, the recent Avalanche liquidation data indicates significant selling pressure in the market, particularly affecting long positions. Over the 12-hour and 24-hour timeframes, the majority of liquidations were from long positions, with $678.98K and $2.58M being liquidated, respectively. This suggests that AVAX has been in a strong downtrend, forcing many traders who were holding long positions to close their trades at a loss. In contrast, short liquidations during these periods were relatively smaller, indicating that bearish sentiment has prevailed, but not to the same extent as the pressure on longs.

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