Avalanche‘s AVAX token has shown slight progress recently, rising 1.36% to hover around $6.68. Despite this, technical analysis suggests a genuine comeback is not on the horizon. Since the token remains over 95% below its all-time high of $144.96, it’s grappling with enduring bearish pressures.
Can AVAX Reclaim Lost Support?
AVAX struggles to surpass the $8.00 to $9.00 zone, which has transformed from a support level into a critical resistance. Failing to breach this threshold might continue to pressure AVAX with renewed selling forces. According to Global Rashid, the lost support might reposition the token to test a protective layer between $4.50 and $5.50.
The positioning near $6.68 doesn’t yet indicate a shift from the prevailing downtrend unless resistance at $8.00 to $9.00 is overcome.
What Do Short-term Indicators Reveal?
Current indicators show AVAX lacking substantial strength. A report by OlaxBT indicates that while the price remains above the VWAP metric, the declining CVD indicator reflects ongoing sell pressure even amid ephemeral resilience. Moreover, despite a neutral shift in the MFI, the weak buying interest suggests that a robust recovery is improbable without holding above $6.50 and reclaiming the $7.00 to $7.50 range with strong volume.
Higher time frame analyses point to looming downside risks. Trader Rami Scalps highlights $3.50 as a potential pivot within a broad corrective path, a sentiment echoed by The Wyckoff Architect suggesting a possible drift towards the $3.00 mark.
• Current price stabilization zone: $6.68.
• Resistance: $8.00 to $9.00 (crucial former support).
• Intermediate support: $4.50 to $5.50.
• Major long-term support: $3.50 to $3.00 potentially forming accumulation base.
Fundamental insights reveal impactful treasury shifts, as highlighted by crypto analyst That Martini Guy. Avalanche Treasury’s Nasdaq debut, despite a 38% share decline, indicates plans to acquire over $1 billion in AVAX, cementing its reputation as a scalable layer 1 network.
The short-term outlook remains overshadowed by technical dynamics. As AVAX stays below the $8.00 barrier, risks of slippage towards $4.50 or $3.50 persist. Only a strong recovery surpassing $7.50 can channel the token towards the $10 to $12 range, reigniting a bullish narrative.
