Avalanche (AVAX) price has been trading inside a descending channel since December 2024. The current price is at around $16.21, down 6.22% in the last 24 hours. Volume has decreased by 18.04% to $437.08 million in the same period.
Will this bearish trend continue or is a breakout from the channel on the horizon?
AVAX Price Analysis
The AVAX price chart shows that there has been a bearish trend since December 2024, peaking around $56 in price, and then has fallen by approximately 71%. The long downtrend makes a well-formed descending channel that has been making lower highs and lower lows. The recent price action shows that the lower boundary of this channel is being consolidated upon, which indicates accumulation and possible trend shift.
The upper boundary would be correlated to the R1 pivot point around $24, while the lower boundary would be with the last days’ local lows. A breakout above this channel would, however, prove that it is a possible trend reversal.
Standard pivot points indicate AVAX price is currently trading between S1 (14.38) and S2 (9.98), with immediate resistance at R1 (24.73). An upside break from this level would indicate a probable reversal of trend.
RSI is at 37.07, approaching but not yet oversold. For several weeks, RSI has fluctuated between 40-60, suggesting consolidation. An increase from the recent low of 35.43 suggests the bullish momentum is likely building in anticipation of a trend reversal.
Important levels of support include $14.38 (S1) and $9.98 (S2), while the psychological $15 level is the immediate support level. There are significant resistances found on $24.73 (R1), at $29.47 (R2) and on top of $33.86 (R3), while the upper boundary of the channel serves as dynamic resistance.
The price action has recently been showing an increase in buying strength toward the lower boundary of the channel as indicated in the formation of doji and hammer candles. It suggests that the very narrow price ranges show contracting volatility. There might be a major movement coming soon.
AVAX Price Targets
If AVAX breaks above the descending channel, it targets the 38.2% Fib level toward approximately at $24.73, as would be in perfect alignment with R1 pivot point. On the more optimistic side, AVAX price could even reach 29.47 (R2) if the bullish trend holds strong.
If it fails to surpass the near-term resistance, this could mean more consolidation or a test of support of $14.38 again, and the possibility of going down to $9.98 if broader market sentiment deteriorates.
Avalanche Futures Signal Potenial Recovery
Current OI stands at approximately $178.0 million, representing a 24-hour decline of – 3,27%. Recent funding rates show positive movement after being negative, indicating that long (buyer) positions are now more prevalent than short positions.
The shift to positive funding rates suggests increasing bullish sentiment among traders. According to CoinGlass data, AVAX funding rates range between 0.0100% and -0.0317% across different exchanges.
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