AVAX Tests Support at $19.97 as Bearish Pressure Weighs on Recovery
February 6, 2025 — Avalanche’s native token, AVAX, is showing signs of a potential double bottom near the $19.97 support zone. However, bearish momentum continues to overshadow the recovery effort amid heightened global economic uncertainty and worsening trade tensions that have rattled broader crypto markets.
AVAX has dropped approximately 8.5% in the past 24 hours, reflecting the market’s sensitivity to macroeconomic headwinds. While buyers stepped in near the $20 level, downside pressure remains strong.
Technical Overview
- Over the past day, AVAX declined from $21.84 to $20.11, highlighting a steep downtrend.
- A sharp selloff occurred as the token fell from $21.49 to $21.01 on high volume (2.56M), indicating strong selling interest.
- The $20.00 level saw a notable influx of buying volume (1.73M), temporarily slowing the decline.
- An initial bounce from $20.00 took AVAX to $20.38, but the rally was short-lived as the token quickly dropped to a session low of $19.97.
- Price action has since formed a potential double bottom pattern at $19.97, with a modest rebound to $20.13 backed by increased buying volume.
- AVAX is now consolidating within the $19.97–$20.35 range, hinting at a possible base formation. However, sustained bearish sentiment and resistance at $20.35 continue to cap upward movement.
While the double bottom may suggest a technical support floor, continued macroeconomic stress and weak recovery signals keep AVAX vulnerable to further downside unless broader market conditions stabilize.
