AVAX Drops Below Key Support as Traders Brace for More Downside
Avalanche (AVAX) extended its downtrend on Wednesday, slipping to $18.38 as technical weakness and broader market jitters continue to pressure altcoins.
The token lost support at $21.05, breaking out of a narrowing consolidation pattern and confirming a bearish setup. A series of lower highs and lower lows has shaped a descending channel that’s now guiding price action.
After briefly holding the $20.85 level, AVAX attempted a modest bounce, forming a double bottom and retesting resistance at $21.03 — but momentum faded quickly. The token’s failure to reclaim previous support levels has left bulls on the defensive.
Volume confirmed the downside move, with peak activity — over 50,000 units traded — occurring during selloffs rather than recovery attempts. The 24-hour trading range tightened between $21.56 and $20.89, reflecting reduced volatility but continued downside bias.
Unless AVAX can reclaim $21.64, now acting as near-term resistance, analysts say a move toward $20.50 or lower remains on the table.
With the broader market under stress and altcoin dominance slipping, Avalanche will need a clear catalyst to reverse its short-term trend.
