Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

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AVAX:

Market context

Since our last analysis, AVAX has performed in line with expectations, trading higher after reclaiming the critical $41 level. As we highlighted, the reclaim of $41 was pivotal, and this level has now proven its importance.

After a broader market-wide flush out, AVAX retraced and reacted cleanly off the $41 buy box level, demonstrating the strength of this support. This development is a strong indicator of AVAX's adherence to key technical levels and reinforces our original thesis about its bullish potential. However, while AVAX's reaction has been promising, broader market sentiment remains fully clear. It's unclear whether the market has established a definitive floor.

For now, $41 for AVAX stands as the key support inflexion point, and any pullbacks into this area are expected to consolidate around these levels.

Price action

Support level:

• $41 has once again proven its strength as a key level, providing a clear reaction during the market flush. This reinforces its importance as a buy zone and a potential area for consolidation.

Resistance levels:

• Near-term: $50 remains the next resistance to clear.
• Mid-term: $65, aligning with a prior swing high.
• Longer-term: $75, marking a return to historical highs.

As the market stabilizes, we'll be watching closely for how the price interacts with the $41 level. This will be pivotal in determining whether AVAX can regain upward momentum or if further consolidation is necessary.

Market mechanics

The market-wide flush-out has brought AVAX back into its buy zone, providing an immediate opportunity for spot bag accumulation. This reaction at $41 is encouraging, but it's critical to exercise patience with added leverage or trading positions until the market settles and provides more clarity.

This type of flush is often followed by a consolidation phase, where prices revisit the inflexion point (in this case, $41) to establish stronger support. For now, this level remains the focal point for accumulation and monitoring. We can see clearly here from the funding rate above that things got one-sided with positive funding of 0.0580%. This isn't sustainable, and a flush-out was needed. We saw this across the board. Now, this is balanced again. Opens up for positioning.

Playbook

Spot accumulation

• Continue to accumulate within the $41 buy box for long-term positioning. The recent flush-out reinforces the strength of this level as a low-risk, high-reward zone.

Leverage and trading positions

• Avoid immediate trading or leverage exposure until the market stabilizes and provides more clarity. Let the price consolidate and establish a clear directional bias before taking action.

Key levels to watch

• Support: $41 remains the most critical level for AVAX.
• Resistance: Near-term resistance at $50 remains the next key hurdle, with mid-term and long-term targets at $65 and $75, respectively.

Cryptonary's take

AVAX continues to deliver strong adherence to technical levels, with $41 proving itself as a reliable support zone once again. The clean reaction off this level during the market flush is a testament to its strength, making it a prime area for accumulation. That said, the broader market is still finding its footing, and it's unclear if the market-wide floor is in place yet.

This makes patience key, especially for traders or those considering leverage. Spot accumulation at $41 remains the priority for now, while leverage or additional exposure should only be considered once price action consolidates and offers greater clarity.

Looking ahead, AVAX's ability to reclaim $50 will be the next major test. A break above this level would signal renewed bullish momentum and pave the way toward $65 and beyond. For now, the focus remains on $41 as the pivotal level for the next phase of price action.

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DOGE:

Price action

In this analysis, we're zooming in on DOGE's price action, as we've already covered the market context extensively in the previous update. We marked a potential pullback into the $0.35 level, and it now looks like this might play out following the market-wide flush-out.

The steady grind upward that followed DOGE's huge move has transitioned into a consolidation phase with a clear battle between buyers and sellers. In this situation, decision-making becomes straightforward: what's more likely based on the context of the asset? Further immediate expansion seems unlikely, given the magnitude of DOGE's recent growth.

A slight pullback, which we projected, makes much more sense. After the flush out, DOGE has re-entered its range cleanly, showing resilience in the face of broader market weakness. Now, the $0.35 level comes into play, and we'll place a buy box there. It's worth noting DOGE's ability to hold up well through this pullback, reinforcing the volume and density of interest in the asset.

Market mechanics

DOGE's funding rate hit a wild 0.0980% on December 5th, which was always going to lead to some form of correction. Funding rates that high show extreme long-side exposure, and corrections become inevitable. Now that we've returned to healthier levels, DOGE remains in a strong position, holding at the top of its range.

The high funding rates also reinforce the meme coin sentiment, highlighting the market's willingness to maintain outsized exposure to DOGE, a testament to its dominance in this narrative.

Playbook

Buy box

• Place the buy box at $0.35, as this level has held historically and aligns with the current pullback dynamics. It's the key accumulation zone we're watching closely.

Upside levels

$0.43: Still the next resistance level to reclaim. A breakout above this would signal a renewed push higher. $0.63: The mid-term target remains intact and aligns with DOGE's overall momentum-driven narrative.

Key takeaways

DOGE's ability to hold up during the market flush-out speaks volumes about its volume density and the strength of demand. Stay patient and wait for confirmation of levels before adding leverage or trading exposure.

Cryptonary's take

DOGE's resilience through the recent correction is impressive. The $0.35 level now becomes the most important focus for accumulation. What stands out here is DOGE's ability to consolidate at the top of its range, even after a significant market-wide flush.

The extreme funding rates seen earlier this month highlight the speculative appetite for DOGE, reinforcing its position as the king of the meme coin narrative. This willingness to maintain long exposure, even during corrections, speaks to the broader sentiment surrounding DOGE.

For now, the buy box at $0.35 is the play, and we'll monitor how price action develops at this level. If DOGE can reclaim $0.43, the next leg up to $0.63 remains firmly in sight. As always, stick to the levels, manage risk, and don't chase trades unnecessarily.

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