Avalanche’s native token AVAX is showing signs of short-term weakness, underperforming the broader crypto market amid increasing technical pressure and a developing “double top” pattern. The asset fell 3.4% over the last 24 hours, breaching a critical support level at $17.45 as bearish volume intensified.
AVAX Declines Amid Market-Wide Pullback
AVAX dropped from $17.82 to $17.21, logging a 3.4% decline within a 24-hour period. This move outpaced losses in the CoinDesk 20 index, which dropped only 1.6% during the same timeframe. The broader index excludes stablecoins, memecoins, and exchange tokens, offering a clearer picture of core market trends.
The break below $17.45 signals a loss of short-term bullish momentum, with increasing selling pressure exacerbated by weakening market sentiment.
Double Top Pattern Signals Short-Term Weakness
Technical analysis revealed that AVAX formed a short-term double top near the $18.02 level, a bearish reversal pattern often seen as a sign of market exhaustion. The second peak failed to break higher, triggering accelerated selling pressure that pushed the token lower.
- Volume surged to 710,723 units, signaling strong bearish conviction.
- AVAX slipped to a low of $17.02 before staging a modest recovery to $17.25, forming a V-shaped bounce.
This short-term price structure suggests intense volatility, with buyers stepping in at lower levels—but the technical damage from the double top remains a concern.
Support and Resistance Levels to Watch
The $17.20–$17.45 range is now acting as a key support zone, while resistance lies around the $18.00–$18.10 level, where the double top pattern initially formed. A sustained close below $17.20 could open the door to further downside, potentially targeting the $16.50–$16.20 region in the near term.
Conversely, any bounce back above $17.50 with strong volume could signal the start of a short-term reversal.
Market Outlook
AVAX’s underperformance highlights mounting bearish sentiment in the altcoin space, as traders react to both macro pressures and technical breakdowns. With volume spikes confirming increased selling activity, traders should closely monitor support levels for potential breakdowns or stabilization signals.
For now, AVAX remains vulnerable unless buyers reclaim control above the $17.50–$18.00 resistance zone with sustained momentum.
Investors are advised to watch for consolidation or further price rejection near current levels, as the double top formation continues to dictate short-term market direction.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.