AVAX Dual Scenario Analysis: Breakout or Further Drop?

In the analysis of the AVAX 1H chart, if the highlighted candle gets strongly engulfed by a solid red candle, we could expect a continuation of the Avalanche downtrend. On the other hand, if the blue line is broken to the upside, it could present a good long opportunity.

Keep in mind that in both scenarios, the blue box serves as our stop-loss reference. In the bullish case, the bottom of the box will be our stop-loss level, while in the bearish case, the blue line will act as our stop-loss.