Avalanche Struggles to Break Free from Downtrend Despite Quick Price Bounce
Avalanche’s AVAX token ($17.54) remains locked in a bearish pattern, unable to escape a persistent descending channel despite staging a sharp V-shaped rebound, according to technical analysis from CoinDesk Research.
In the last 24 hours, AVAX has fallen 1.4%, trading near $18.43. That underperformed the broader CoinDesk 20 Index, which slipped just 0.5%.
Sellers remain in control, although flashes of aggressive dip-buying have surfaced during intraday plunges.
Technical Breakdown:
- AVAX fluctuated within a 24-hour range of $0.84 (4.5%), hitting highs of $18.93 and lows of $18.09.
- Strong support has formed in the $18.15–$18.25 zone, while resistance continues around $18.85–$18.90.
- The price action remains confined within a downward-sloping channel, highlighting persistent bearish sentiment.
- A sudden drop from $18.35 to $18.09 on significant volume of over 52,000 units sparked a quick rebound back to $18.40.
- Momentum accelerated when AVAX broke through resistance at $18.27 amid a surge in volume exceeding 67,000 units, creating fresh support between $18.33 and $18.35.
- After the rebound, trading entered a period of sideways movement, punctuated by a brief three-minute window with zero recorded volume, hinting at traders pausing for direction.
Whether AVAX can break out of its bearish channel remains to be seen. For now, the market waits to see if buyers can regain control—or if sellers will press prices lower once again.
