AVAX rallied over 50% between March 11 and 26, culminating with a high of $23.46. However, the price broke down last week, invalidating its bullish structure.
After last week’s breakdown, Avalanche announced a slew of positive news this week, including launching a new Layer-1 by KOR Protocol, which aims to bring intellectual property to Avalanche.
With that in mind, let’s examine the AVAX price action to see if the breakdown is salvageable or if new lows await in April.
The AVAX price has increased since March 11, when it fell to a low of $15.27. The rally led to a high of $23.46 last week, reclaiming the $20 horizontal area.
The $20 support area is critical since it has provided resistance and support since 2022.
While its reclaim was a positive development, AVAX created a bearish candlestick last week (red icon) and has fallen below it since.
The sub-wave count is black, implying that AVAX has another downward movement left before reaching its low. The fall below the $20 support area fits with the start of sub-wave five.
Moreover, a descending parallel channel contains the AVAX price action. Giving waves A and C the same length leads to a low of $7.70, touching the channel’s support trend line.
The weekly and daily time frame readings suggest the AVAX price will continue decreasing in April, possibly falling to single digits.
AVAX Correction Not Over
The AVAX price invalidated its bullish structure by creating a bearish candlestick last week. The $20 horizontal area will likely provide resistance in the future.
Avalanche’s price action and wave count both predict new lows. The closest support levels are at $9.50 and $7.70.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
