Amid the growing cryptocurrency market, Avalanche (AVAX) has gained attention with a 53% jump since March 11. However, potential correction signals prompt caution.
AVAX Rally and Technical Signals
After a sharp 72% decline since mid-December 2024, AVAX has shown recovery. However, crypto analyst Ali Martinez notes that the TD Sequential indicator now signals a potential pullback. AVAX briefly reached $23.40 before pulling back to $21.80, reflecting waning bullish momentum. If AVAX fails to hold above the critical $20 support level, it risks declining to $17.
Bullish Targets and Macroeconomic Impacts
Bulls are aiming for a breakout toward $30, aligning with both the 200-day MA and EMA. However, macroeconomic uncertainties continue to pressure risk assets. Analysts highlight the importance of staying above $20 as a resilience signal. A sustained push toward $30 could confirm AVAX's recovery trend.
AVAX at a Critical Juncture
The $22 resistance zone is proving to be a tough barrier. Consolidation at this level may give bulls a chance for further upward movement. Conversely, failure to maintain above $20 could intensify selling pressure.
All eyes are on Avalanche's price action as upcoming sessions will determine whether AVAX can maintain its recovery momentum.
