Avalanche Breaks Key Support as Downtrend Gains Momentum
Avalanche (AVAX) extended its decline on Wednesday, slipping to $18.38 as selling pressure mounted across the crypto market. The move tracked a 1.1% drop in bitcoin (BTC) over the same period, amplifying bearish sentiment.
Technical Breakdown
- Descending Channel: AVAX price action has followed a descending channel, marking a series of lower highs and lower lows over the past 24 hours.
- Support Breach: The token broke below key support at $21.05 amid a surge in volume, signaling a continuation of downside momentum.
- New Resistance Zone: Sellers reasserted control near $21.64, a level now acting as firm resistance.
- Critical Support Levels: The $20.85 level has become immediate support. A breakdown here could expose $20.50 and trigger further losses.
- Short-Term Rebound: A double bottom pattern briefly formed at $20.85, sparking a short-lived rally to test resistance at $21.03.
- Volume Confirmation: The session’s peak volume — 50,477 units — coincided with downward price movement, reinforcing the prevailing bearish trend.
- 24-Hour Price Range: AVAX traded between $21.56 and $20.89, a range of 0.79 points (3.67%).
With technical support levels crumbling and volume favoring sellers, analysts warn that AVAX may face additional downside unless buyers step in to defend the next key threshold.
