AVAX Rebounds 6% as Bulls Buy the Dip Amid Political Drama and Market Uncertainty
Avalanche’s AVAX token is showing signs of a strong rebound after a sharp sell-off triggered by a broader market shake-up tied to escalating political tensions.
On Thursday, the crypto market reacted to a fiery online confrontation between U.S. President Donald Trump and Tesla CEO Elon Musk, in which Musk called for Trump’s impeachment and alleged his involvement in the Epstein files. The dramatic exchange fueled investor unease and sent risk assets tumbling.
AVAX dropped 8.14%, sliding from $20.14 to a low of $18.48, before buyers stepped in. The token has since rallied 6% to $19.65, recapturing nearly 58% of its intraday losses. According to CoinDesk Research’s technical analysis, AVAX is now trading within an ascending channel, with immediate resistance at $19.76.
Despite a 1% decline over the past 24 hours, AVAX has outperformed the CoinDesk 20 Index, which is down 0.85% over the same period.
Market Signals Strong Accumulation
Recent trading sessions highlight bullish undertones. Volume spikes aligned with price increases—particularly during the push to a local high of $19.76—suggest strategic accumulation at lower levels. Analysts point to the consistent formation of higher lows over the past 14 hours as further confirmation of positive momentum.
If current price action holds, a test of the $20.00 psychological barrier could be next.
🔍 Technical Summary:
- Initial Decline: AVAX dropped 8.14% from $20.14 to $18.48 amid peak volume of 3.65M.
- Support Zone: Strong buying emerged in the $18.48–$18.88 range.
- Recovery: Token rose to $19.65, reclaiming 57.8% of losses.
- Chart Pattern: Ascending channel formed, resistance near $19.76.
- Momentum: Higher lows observed over 14 hours signal bullish trend.
- Hourly Surge: 1.01% gain from $19.49 to $19.69 in the last hour.
- Volume-Driven Breakouts: Notable spikes (45,299 & 64,948 units) accompanied moves to $19.76.
- Current Support: Sitting strong at $19.53–$19.55.
While political volatility adds pressure to risk assets, AVAX’s quick rebound and volume-backed recovery suggest market participants view dips as buying opportunities. Traders are now eyeing a break above $19.76, which could open the door to a retest of the $20.00 mark.
