Avalanche‘s native token, AVAX, is drawing renewed attention as it shows signs of technical improvement and rising institutional interest in recent weeks. The market is fixated on whether AVAX can maintain its position above the newly solidified range between $6 and $7. Should this $7.05 support level hold, AVAX could potentially aim for the $8.30 mark again.
Is AVAX Seeking a Solid Ground on a Monthly Scale?
In the monthly overview, it’s evident that AVAX has spent the past three months probing the lower thresholds of its long-term upward structure, subsequently regaining footing around $7.30 to $7.40. Analyst Honeybear notes that the monthly Supertrend support hovers near $6.29. On the broader timeframe, key resistance levels are identified at $17.03 and $20.71.
According to Honeybear, “The persistent defense of the $6.20 to $6.30 region suggests a more substantial base is forming, and a monthly recovery above $10 could significantly enhance the outlook.”
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Will AVAX’s Short-Term Horizon Stabilize at 6.60 to 6.80?
In its recent recovery attempts since June, AVAX has broken the downward trend line, propelling itself above $7. The price has since settled into a lateral movement between $7.30 and $7.40. Analyst Cihan Altcoin suggests that technical retracements to the $6.60 to $6.80 range, where the previous trend line lies, would be considered normal.
Should this region provide support, AVAX might carve out a new trajectory between $7.40 and $7.50. Further testing of the previous peak near $7.80 to $8.00 could follow. However, if the trend line clearly dips below this support, the $6.20 to $6.40 area will regain focus.
How Crucial is the 7.05 Dollar Threshold for AVAX?
Recent technical assessments have flagged the $7.05 level as a pivotal threshold. Analyst KhonshuArc emphasizes the importance of maintaining this area to validate the current breakout pattern. The supportive positioning of daily moving averages below the price bolsters the recovery structure.
KhonshuArc points out, “Staying above $7.05 maintains the most recent base, leaving the possibility of a push toward the $8.30 region on the table.”
If AVAX can overcome the $8.30 resistance, the next technical target area may form between $9.50 and $10.00. On a more extended timeframe, the monthly chart shows notable resistance in the $17 to $21 range.
- Three major U.S. asset managers now hold a combined 5.105 million AVAX, valued approximately at $38.27 million.
- Of this total, 3.49 million AVAX are currently staked.
- VanEck has staked about 80% of its AVAX holdings.
- The ETF-linked AVAX holdings have surged by 34.2% over the past 13 weeks.
In recent trading, AVAX declined by 3.24% within 24 hours, settling around $7.17. A drop below the $7.05 support could heighten the risk of a deeper pullback toward the $6.60 to $6.80 range. Stronger structural support remains around the $6.20 to $6.30 area.
