AVAX Bounces 6% Off Lows as Price Action Firms Amid Political Risk Shock
Avalanche’s AVAX token demonstrated notable resilience in the face of macro-driven volatility, rebounding sharply after an 8% drawdown triggered by heightened political tension between President Donald Trump and Elon Musk.
AVAX declined from $20.14 to $18.48 on June 5 as crypto markets broadly sold off, but quickly found responsive buying at the $18.50 level. The token subsequently rallied 6% to $19.65, reclaiming over half of its intraday losses and outperforming the CoinDesk 20 Index, which was down 0.85% over the same period.
Price action has since formed a short-term ascending channel, with local resistance building at $19.76. Volume-led breakouts, including a 1.01% move from $19.49 to $19.69, suggest growing accumulation interest at current levels. Notably, the $19.53–$19.55 area is now acting as interim support.
Price Structure Overview:
- Correction Depth: –8.14%, bottoming at $18.48
- Recovery Strength: +6%, reaching $19.65
- Trend Signal: Higher lows over 14 hours point to constructive base formation
- Volume Dynamics: Breakouts accompanied by sustained increases in trade activity
- Technical Bias: Neutral-to-bullish; breakout above $19.76 could target $20.00+
While political catalysts remain fluid, AVAX’s technical resilience and relative strength hint at continued bid-side pressure. A confirmed breakout above near-term resistance could attract trend-following flows.
