Key Highlights:
- AVAX approaches a critical demand zone, signaling potential support.
- The downtrend may be ending as momentum shifts toward a reversal.
- Traders watch key price levels for a potential breakout.
The price of Avalanche (AVAX) is nearing a key demand zone, with traders watching for signs of a potential trend reversal. After months of declining prices, recent charts and technical indicators suggest early stages of market stabilization.
Recent trading activity shows Avalanche gaining momentum, with analysts identifying potential breakout levels. Market sentiment remains cautious, but some experts believe the asset may be nearing a turning point.
AVAX Price Approaches Demand Zone After Downtrend
Since late 2024, AVAX has followed a strong downtrend, creating lower highs and lows. The token is now nearing a demand zone between $14 and $17, which previously acted as support.
This zone is seeing renewed buyer interest. Market analyst LLuciano\_BTC notes that AVAX is gradually bottoming out in this range, with momentum shifting from selling to buying pressure.
Falling Wedge Pattern and Bullish Setup
AVAX has displayed a descending wedge pattern on the daily chart—a classic bullish reversal setup. The downtrend has consistently formed lower highs and lows, but the narrowing wedge suggests exhaustion in bearish momentum.
Breaking above the wedge’s resistance line could signal the start of a new uptrend.
👉 Track AVAX price movements in real-time
In the last trading session, AVAX gained 4.43%, closing at $16.75, with price fluctuations between $14.66 and $17.23. A breakout above resistance could push the token toward short-term targets of $25–$30, with potential long-term gains reaching $50.
Momentum indicators hint at a reversal:
- RSI: 38.19 (below neutral 50 but rising).
- MACD: Negative but narrowing, indicating weakening bearish momentum.
- Cumulative Volume Delta (CVD): Positive at 534.8K, reflecting increased buying pressure.
Analysts See Bullish Potential Despite Bearish Sentiment
While market sentiment remains bearish, analysts maintain a long-term bullish outlook. XBitcode calls Avalanche’s 3-month chart "the most bullish in a decade."
AVAX consolidates within a symmetrical triangle on higher timeframes, strongly supported at $14–$17. Stochastic RSI and Fibonacci retracement levels (0.618) also suggest oversold conditions reversing.
Futures open interest rose 1.41% to $177.8M in 24 hours, signaling renewed trader participation—critical for sustaining upward momentum.
👉 Explore AVAX trading strategies
Price Forecast and Market Performance
Current projections suggest a possible 3.45% dip to $19.55 by April 2025, with fear/greed index at 26 (extreme fear). However, AVAX had 16 green days in the past 30 (53% positivity), with 8.20% price volatility.
LLuciano\_BTC speculates the current zone may be an accumulation phase. If demand holds, AVAX could rally to $45–$50 upon breaking the downtrend line—mirroring past post-downturn breakouts.
Traders await confirmation:
- A sustained breakout above $17 could ignite a new bullish cycle.
- The $14–$17 demand zone remains pivotal for support.
FAQ
Q: What is the key support level for AVAX?
A: The $14–$17 zone is critical; it previously acted as strong support.
Q: What indicators suggest a potential reversal?
A: Rising RSI, narrowing MACD, and positive CVD signal shifting momentum.
Q: What’s the long-term price target for AVAX?
A: Breaking resistance could propel AVAX to $25–$30 short-term and $50 long-term.