- AVAX is hovering near critical support at $19.50–$19.80, a breakdown could trigger a deeper correction and erase April’s gains.
- The weekly chart shows AVAX testing a long-term trendline, and holding this support could drive the price toward $21.00–$23.00.
- Momentum indicators, including Stochastic RSI and MACD, show mixed signals, hinting at potential upside if momentum builds.
Avalanche (AVAX) is trading at a make-or-break level after a sharp pullback. If current support fails, the asset could erase its April gains and shift back into bearish territory, making this zone critical for near-term direction.
$AVAX Must Hold the $19.50–$19.80 Support Zone
Alpha Crypto Signal highlighted on X that AVAX is hovering above a crucial support range between $19.50 and $19.80. This level once acted as resistance and is now being tested as support. A breakdown here could lead to a deeper decline.
Trading at $19.95 as of writing, AVAX is under both the 9-day EMA at $20.495 and the 50-day SMA at $19.884. Price action remains weak, with no visible spike in volume to suggest buyer defense. If $19.50 fails, downside targets near $18.00 and $16.50 become more likely, potentially wiping out April’s rally.
Maintaining this level is essential to preserve the current bullish structure. A strong bounce, supported by volume, could stabilize the market and shift momentum upward.
Critical Retest of Long-Term Trendline on Weekly Chart
The weekly chart shows AVAX testing a horizontal trendline that dates back to late 2021. The coin recently broke above this trendline and is now retesting it as potential support, trading near $19.98 and just above the $19.51 historical level.
This zone has acted as support and resistance over the last few years. Holding above it would confirm the breakout and possibly drive a move toward $21.00–$23.00. A failure to hold, however, could mark the start of another decline toward $14.00–$15.00.
Momentum Signals Show Early Signs of Recovery
Momentum indicators are showing early signs of strength. The Stochastic RSI is in bullish territory, with %K at 69.26 and %D at 54.90. This leaves room for further upside if momentum builds.
Meanwhile, the MACD remains negative, with the line at -3.25 and the signal at -3.59. However, a flattening histogram suggests possible bullish convergence if momentum continues. Traders will monitor these signals alongside price action at support.
