- AVAX is testing a critical support zone, but momentum remains weak.
- Fibonacci retracement levels suggest a possible bounce, but resistance is piling up.
- A break below $18 could open the door for deeper losses in the coming weeks.
Avalanche (AVAX) has been in a steady downtrend, with sellers maintaining control as price struggles to find solid footing. Recent attempts at recovery have been short-lived, with each bounce facing rejection at lower highs. This kind of movement signals a lack of strong buying pressure, leaving AVAX vulnerable to another leg down.
At the moment, AVAX is hovering around a crucial support zone near $18-$19. If this level holds, it could provide a foundation for a short-term rebound, but buyers would need to step up aggressively. Otherwise, a clean break below this area could send the price tumbling toward the next major support at $15-$16.
Avalanche Price Action Hints at More Downside
When checking out the TradingView chart, AVAX is flirting with the 78.6% retracement of its previous major rally. Historically, this level tends to act as either a deep correction point or the last stop before another big drop. If bulls manage to defend this area, a relief rally toward $22-$24 could be in play.
The Bollinger Bands are also indicating heightened volatility, as they’ve started to expand after a period of tight consolidation. Typically, this suggests an incoming strong move, but the direction remains uncertain. A break above the midline of the bands could be a signal that momentum is shifting in favor of the bulls.
What’s Next for AVAX?
For now, the key focus is whether AVAX can hold its support near $18-$19. If this level holds and buyers step in, we might see a short-term rally toward $22 or even $25 if momentum builds. However, without a strong recovery, the risk of breaking lower remains on the table.
If sellers continue to dominate and push AVAX below $18, a move toward $15 becomes increasingly likely. This level has historical significance, making it an area where buyers could attempt to slow the decline.
Avalanche was launched in 2020 by Ava Labs as a high-speed blockchain designed for decentralized applications and custom blockchain deployments. It has gained traction due to its scalability and low fees, but like many cryptocurrencies, it remains vulnerable to broader market sentiment.
The next few days will be crucial in determining whether AVAX can stabilize or if another round of selling pressure is on the horizon.
