Avalanche has once again reached a historically relevant price zone, aligning with the levels last seen during the August 2024 market downturn. Top analyst AMCrypto revealed on X that this zone has acted as a strong support level in the past, and expectations are growing that it could hold once more. The analyst speculates a possible consolidation phase before reversal, a sentiment also found in the recent price action of AVAX.
AVAX’s price has been in a declining trend, forming lower highs and lower lows. A downward trendline had previously indicated this bearish pattern, but a key support zone, denoted on the chart, has once again come into play. This level has historically attracted buying interest, making it a key area to watch.
Technical analysis suggests that if AVAX’s price maintains its position above this support, it could set the stage for a recovery. The historical significance of this zone increases the likelihood of traders stepping in, as has been observed in previous price cycles. However, a confirmed reversal will require sustained buying pressure and the formation of higher lows.
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What you'll learn 👉
Avalanche Trendline Breakout and Short-Term Price Action
A descending trendline has now been broken, signaling a potential shift in momentum. AVAX price has rebounded from the support zone, with early signs of upward movement appearing on the chart. The highlighted section in yellow indicates this push, which could be an early indication of a trend reversal. However, confirmation will be necessary before establishing a definitive shift in trend direction.
Short-term traders are watching for further price action above this level, as staying within this range may result in consolidation before a potential breakout. The possibility of a bounce remains, but technical confirmations such as increasing volume and sustained momentum will be key factors to observe.
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AVAX Market Sentiment and Future Outlook
Market sentiment around Avalanche suggests cautious optimism as traders assess whether the historical support level will once again hold firm. The tweet from AMCrypto aligns with this perspective, noting past price behavior at this level as an indication of potential stability.
The next moves for AVAX’s price will largely depend on whether buying pressure continues and if the market sustains its current rebound. If support holds and bullish momentum builds, AVAX could see further upside. However, failure to maintain this level could lead to another leg downward, reinforcing the prior downtrend. Traders will be closely monitoring the market’s response in the coming days.
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