- Avalanche (AVAX) is struggling to stay above $20, reflecting continued bearish momentum and rejection from recent highs.
- The price remains below key indicators like the Bollinger Band midline and 9-DEMA, signaling weak trend strength.
- Strong resistance is forming between $20.20 and $21.70, while support near $18.45 may be tested soon.
- Volatility is increasing, and a break below current support could lead to deeper losses if momentum doesn’t shift.
Avalanche (AVAX) is under intense selling pressure as the broader crypto market continues its downward trajectory. AVAX is trading at $19.65, reflecting a modest 1.23% intraday gain. However, the overall market trend remains bearish, with AVAX dropping significantly from recent highs and slipping below crucial support levels.
Avalanche Struggles to Reclaim $20, Bears in Control
The 4-hour chart reveals a consistent downtrend, with AVAX falling from the $26.82 resistance area and losing nearly 27% of its value over the past few weeks. The price is currently below the Bollinger Band midline at $20.20 and the 9-period DEMA at $19.35, both of which are key indicators of trend strength. This failure to reclaim higher ground suggests the bearish momentum is still intact.
Resistance is building around the $20.20 and $21.70 levels, where multiple failed attempts to break higher are evident. Meanwhile, strong support lies between $18.51 and $18.45, areas highlighted by historical demand and visible accumulation zones. These levels may offer a temporary cushion, but the current trend indicates a high risk of further downside unless momentum shifts quickly.
Volatility is also increasing, as shown by the widening Bollinger Bands. Price movement toward the lower band typically indicates continued selling pressure. Additionally, the red resistance zones from $21.70 to $26.82 suggest that any short-term recovery will likely encounter heavy overhead supply.
From a technical perspective, AVAX remains in a bearish phase. The token must reclaim the $20.20 resistance and close above the 9-DEMA to invalidate the current downtrend. Until then, the risk of a drop toward $18.45 remains high. A break below this level could trigger deeper losses, while a successful rebound might pave the way for a relief rally targeting $21.70.
Investors and traders should monitor these key levels closely, as Avalanche’s next move could set the tone for its medium-term direction. With market sentiment still leaning bearish, caution is warranted.
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