Avalanche (AVAX) is facing growing bearish pressure, leading to a price decline amidst active trading.
Current Situation with AVAX
As of publication, AVAX is trading at $19.14, marking an 11.49% decline over the past 7 days. According to CoinMarketCap, AVAX has dropped by 3.05% despite a high trading volume (+50.31%), indicating increasing selling pressure.
Technical Analysis of AVAX
According to Elliott Wave principles, the technical structure of AVAX may suggest that the coin is finding support before a significant price increase. Despite the bearish trend, AVAX shows signs of strength on the 4-hour chart. The coin is completing its wave 2 correction with a pullback from the golden Fibonacci levels of 61.8% and 78.6%. As a result, the $19-$20 zone could serve as a springboard for the next jump.
What to Expect Next?
The current technical setup indicates that AVAX may face another low before a substantial price reversal. If Wave 3 begins, bulls may enter positions targeting the $30-$30 zone based on Fibonacci extensions. The $17 zone serves as a key demand area for triggering bullish momentum. A break below this level could invalidate the apparent bullish structure. A strong breakout above $22.80 could signal the completion of wave 2. Traders are closely monitoring confirmations around these key levels to understand AVAX's next moves amidst the prevailing bearish pressure.
Currently, the situation with Avalanche remains uncertain. Traders should closely monitor key levels to gain clarity regarding future signals in the market.
