Avalanche’s native token AVAX staged a solid recovery after a sharp decline, signaling renewed buying interest near a major support level. This technical bounce hints at potential short-term bullish momentum, provided key demand areas continue to hold.
AVAX Drops 5.6%, Then Rebounds on High Volume
AVAX fell by 5.6% in 24 hours, underperforming broader crypto indexes, which declined around 3.2% during the same timeframe.
The decline pushed the AVAX/USD pair into oversold territory, triggering a sharp rebound. According to recent technical analysis, a recovery followed a 6.46% drop, with the token bouncing back as strong buyers stepped in.
Key Technical Levels Hold Strong
A high-volume support zone between $20.76 and $20.85 played a critical role in stopping the downtrend. This area saw heavy accumulation, with trading volume spiking to over 23,000 AVAX units per minute, indicating strong demand.
The token broke through resistance at $21.65, forming a V-shaped reversal pattern, often a bullish signal in technical setups.
This rebound also suggests that $20.76–$21.00 could act as a major near-term demand zone, crucial for any sustained upward momentum.
V-Shaped Recovery Signals Strength
Price action over the last session confirms a V-shaped recovery, typically characterized by a sharp drop followed by an equally sharp rise. This pattern, coupled with the psychological support around $21.00, suggests that bulls may be regaining control of short-term price action.
The breakout above $21.20 pushed the token out of a descending channel, opening room for potential upside continuation.
Outlook: Watching the $21 Zone Closely
AVAX now sits at approximately $21.23, with attention turning to whether it can sustain above this level. Holding above the $20.76–$21.00 support band will be key for maintaining bullish momentum. Failure to hold may invite another retest of lower levels.