Can Avalanche’s AVAX Rise From The Dead? The Zone That Could Change Everything
Despite still having a market cap in the billions, Avalanche (AVAX) has struggled significantly over the last few years. The coin had seen its shine back in the DeFi summer of 2021-2022, but since then, it has essentiall...
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Despite still having a market cap in the billions, Avalanche (AVAX) has struggled significantly over the last few years. The coin had seen its shine back in the DeFi summer of 2021-2022, but since then, it has essentially been downhill from there, save for a few recoveries over the years. Now, though, as the market enters what seems to be another accumulation trend, coins like AVAX are beginning to swim back to the fore, raising the question of whether there is still hope for them.
Why AVAX Could Crash FurtherCrypto analyst RLinda shed more light on the current AVAX price movements and the bearish pressure that has engulfed it. Even while there has been an attempt on the altcoin’s part to actually recover, it has still fallen back to the bears, and declines continue to be the order of the day.
The most recent recovery effort occurred last week as the digital asset pushed above $10 again. However, with the AVAX price falling back down, it showed that the altcoin was trapped within a broader bearish trend. The sell-off also showed that sentiment was still leaning well toward the negative, and investors are taking any opportunity to offload and get out of the coin.
After testing resistance at $10, it has now marked a significant level for bulls to beat if there is to be a continuation rally. As the crypto analyst explained, there are currently mixed signals with the AVAX price, given the current resistance and support levels.
For now, the first major resistance has lain around $9.75, a level where a rejection has been the order of the day in the past. Once broken, though, it doesn’t mean that the cryptocurrency is out of the woods. For one, there are still the $9.820 and $10.28 resistance levels, both of which will have to be surmounted or AVAX risk further crash.
If the bulls are rejected at these resistance zones and a local short squeeze is followed by the AVAX price trending below $9.75, then the analyst predicts that it would lead to further weakness. In this case, triggering a drop to the $8.7-$9.0 level.
In the event of a drop, then the first support level is placed at $9.48. Then it is followed by the budding support at $9.06, before moving toward $8.71, where the last stand is expected to be made by the bulls.
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Avalanche is a tracked market entity in the DigitalMoneyBox archive, making this useful context for readers monitoring repeated mentions and follow-up coverage.
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