Key Takeaways
- AVAX has shown volatility, recently deviating above the $48 resistance level.
- The price is consolidating within a descending triangle pattern, signaling potential bearish momentum.
- A breakdown below $35 support could trigger a 20% decline, while a breakout may reverse the trend.
Market Context: AVAX’s Recent Performance
Between October 2023 and March 2024, Avalanche (AVAX) surged to an all-time high of $65.39, fueled by bullish market sentiment. However, the momentum stalled, leading to a 73% retracement and the formation of a lower high—a classic bearish indicator.
Currently, AVAX trades at $35, a pivotal level sandwiched between:
- Ascending support trendline (in place since September 2023).
- $48 horizontal resistance.
Weekly Chart Analysis
Bearish Signals:
- RSI trending downward, nearing the 50 midpoint.
- MACD bearish crossover (black circles on chart).
- Price Prediction: A drop toward the ascending support trendline (~$28) is likely if **$35 fails** to hold.
👉 Why $35 is a make-or-break level for AVAX
Daily Time Frame: Descending Triangle in Play
AVAX/USDT daily chart shows a descending triangle—typically a bearish continuation pattern. Key observations:
- Support: $35 (validated multiple times).
- Resistance: Descending trendline (lower highs).
Conflicting Indicators:
- Bullish Divergences: RSI and MACD show hidden bullish momentum (green markers).
- Breakout Scenario: A close above the triangle’s resistance could push AVAX toward $48.
Short-Term Wave Count
- Uptrend: A-B-C pattern (black) suggests corrective rally.
- Downtrend: Five-wave decline (white) indicates bearish pressure.
- Critical Level: $32.80 must hold to maintain bullish reversal potential.
FAQ: Avalanche (AVAX) Price Dynamics
Q1: What happens if AVAX loses $35 support?
A: A 20% drop to ~$28 (long-term trendline) becomes probable, with potential for a bounce.
Q2: Are there bullish factors for AVAX?
A: Yes—team announcements (e.g., SwissBorg partnership) could catalyze positive momentum.
Q3: Is now a good time to buy AVAX?
A: Wait for confirmation—either a breakout above the triangle or a rebound from $35.
👉 Expert insights on trading AVAX volatility
Conclusion: Prepare for Volatility
AVAX stands at a technical crossroads:
- Bearish Scenario: Breakdown below $35 → $28 target.
- Bullish Scenario: Breakout above descending trendline → $48 retest.
Pro Tip: Monitor the RSI and MACD for divergences and watch $32.80 as a key defensive level.
Disclaimer: This content is for educational purposes only. Cryptocurrency investments carry risk; conduct independent research or consult a financial advisor.
### SEO Notes:
- **Keywords**: Avalanche, AVAX price, $35 support, descending triangle, breakout, RSI, MACD, bearish pattern.