Avalanche faces heavy resistance | Credit: Hameem Sarwar
Share
Key Takeaways
AVAX remains trapped in bearish structures despite brief bounces
Momentum indicators suggest that sellers are currently in the driver’s seat.
AVAX needs to reclaim $17 before targeting the psychological $20 level.
Avalanche (AVAX) continues to show signs of weakness, despite holding a key support zone. This has raised doubts about its ability to recover.
After a prolonged downtrend and repeated failures to reclaim primary resistance levels, AVAX’s price now finds itself in a fragile position.
Key indicators and market structures across multiple timelines point to persistent bearish pressure, suggesting that any rebound could be short-lived unless bulls regain control with more substantial volume and momentum.
At press time, AVAX’s price is hovering around $13.42, prompting market participants to question whether the asset can surpass its $20 threshold.
AVAX Struggles to Rebound
On the 4-hour chart, the Moving Average Convergence Divergence (MACD) indicates that the asset is still grappling with bearish pressure rather than forming a bullish structure.
Recently, the 26-EMA (orange) crossed above the 12-EMA (blue), creating a bearish crossover that typically signals weakening upward momentum.
Get These Top Crypto Casino Offers Now!
Sponsored
Disclosure
We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
While histogram bars are now showing small green prints, indicating a slowing bearish pressure, the overall MACD setup remains tilted downward until an apparent crossover reversal occurs.
Similarly, the Money Flow Index (MFI) supports this cautious outlook, currently reading 53.20.
Although slightly above the neutral 50 mark, it reflects only modest inflows from temporary market cool-offs. This mild recovery in the MFI resembles a relief bounce rather than a trend reversal.
Due to this, AVAX’s price remains trapped below a critical resistance area around $15, where prior attempts have failed.
Unless bulls reclaim this level decisively, upside targets such as $17 and the psychological $20 mark remain out of reach.
AVAX Faces Price Decline
At the time of writing, AVAX is trading at $13.38, confined within a descending channel.
On its daily chart, the Directional Movement Index (DMI) highlights bearish momentum.
The negative DMI (red) trends strongly at 31.18, above the positive DMI (green), indicating that despite an 8.2% price gain, sellers are in control.
Additionally, the Average Directional Index (ADX) stands at 51.34, signaling a strong bearish trend. This suggests that short-term rallies may encounter heavy resistance, with traders closely watching the upper boundary of the descending channel at $13.58.
The Bull Bear Power (BBP) further confirms this pattern. In the negative territory at -2.28, with multiple red histogram bars, the BBP shows sellers continue to dominate.
As such, AVAX’s price might remain far from $20. If selling pressure persists, AVAX’s price could slip below its current threshold toward the recent low-time high at $12.46.
Using Fibonacci retracement levels, AVAX’s price sits at $13.38. A decisive close below this immediate support would likely trigger further slumps for AVAX.
However, if bullish momentum picks up, AVAX’s price could climb to the 0.618 Fib level at $21.54.
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.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
