Avalanche (AVAX) has come under intense selling pressure amid growing global economic uncertainty, plunging 8.65% in 24 hours and forming a potential technical reversal pattern around a critical support zone.
Sharp Selloff Amid Economic and Geopolitical Stress
In the last 24 hours, AVAX declined from $21.84 to $20.11, a drop triggered by broader market instability caused by geopolitical tensions and global trade disputes. These macroeconomic pressures have affected risk assets across the board, and cryptocurrencies, including AVAX, have not been immune.
AVAX reached an intraday low of $19.97, a level that marks a significant support zone, tested twice during the trading session.
Double Bottom Pattern Offers Glimpse of Stability
Despite the heavy selloff, AVAX formed a potential double bottom pattern at $19.97 — a technical setup that often signals possible price stabilization or a reversal.
- The first major decline occurred between $21.49 and $21.01 on high trading volume (2.56 million), confirming strong bearish momentum.
- Support emerged at $20.00 with increased buy volume (1.73 million), followed by a brief rebound to $20.38.
- After retracing again to $19.97, the price recovered slightly, closing around $20.13, forming a classic double bottom pattern.
The price is now consolidating between $19.97 and $20.35, hinting at a potential base, though upside strength remains limited.
Bearish Momentum Still Dominates AVAX Price Action
While the double bottom pattern may indicate a shift, bearish sentiment remains the prevailing force:
- Failed breakout attempts above $20.35 show limited buying conviction.
- Ongoing volatility and macroeconomic pressures are keeping buyers cautious.
- Resistance at $20.35 remains strong, capping any near-term recovery attempts.
AVAX will need to break above this resistance with volume confirmation to signal a true reversal. Until then, the current range suggests indecision, and downside risks remain.
AVAX Struggles for Support Amid Market Uncertainty
Avalanche (AVAX) is currently in a precarious position, with technical patterns hinting at stability while macro forces continue to exert downward pressure.
Traders should watch the $19.97 support and $20.35 resistance levels closely as these zones will likely determine the token’s next direction in the coming sessions.