- Ali Charts reports that AVAX is breaking out of its consolidation channel, raising speculation about a potential move toward the $7 level.
- AVAX has cleared a key resistance zone but still faces challenges, with the 50-period EMA at $19.81 acting as a crucial level.
- Market participants watch whether AVAX sustains momentum or reverses, with key support at 15–16 and resistance around 20–25 shaping future moves.
Avalanche (AVAX) continues to face technical challenges as its price remains in a consolidation phase.
Crypto analyst Ali_charts recently stated that AVAX is breaking out of its channel, potentially setting the stage for a move toward $7. This tweet adds to the discussion as technical analysis reflects ongoing price struggles and recovery attempts.
Market Overview
AVAX has been in a downtrend since it reached higher levels above 60. A strong sell-off pushed the price lower, and it later stabilized around the 11–12 level. Traders observed a rebound toward 25 before the market lost momentum. Recent candles show AVAX hovering in the mid-to-high teens, which suggests a consolidation phase.
The broader trend demonstrates a market in recovery after a prolonged decline. The current scenario reflects short-term buying pressure. Despite the daily slight increase of 0.03%, the weekly decline of 10.67% signals that recovery remains fragile. Active trading volume of $328,490,786 supports this view.
Technical Analysis
The price action reveals a slight 0.31% increase and situates near a key dynamic resistance level. The 50-period Exponential Moving Average (EMA) is currently at $19.81. Historical price action indicates that breaking this barrier is essential for a bullish move.
The Directional Movement Index (DMI) offers further insight. The DI+ line stands above the DI– line, with values at 20.59 and 14.07, respectively. The ADX reading of 14.16 confirms that the overall trend remains weak. Traders await a rise in the ADX above 20 to confirm stronger market momentum. These technical indicators provide a clear snapshot of current market indecision.
Support and Resistance Levels
Support levels near 15–16 have been tested repeatedly, with buyers stepping in to reverse declines. A close below this zone may prompt sellers to push prices toward the lower boundary of 11–12. A continued drop will lead the price to $7, as noted by the analyst. Maintaining support here remains crucial for any potential rebound.
Intermediate resistance appears around 20–25. Past attempts to breach this region stalled, and traders remain cautious. A sustained recovery above 20 may allow a test of the 25 level. Higher resistance in the 30–40 range poses further challenges, and a breakthrough above intermediate resistance could open a path toward these upper levels.
At the time of writing, AVAX traded at $19.68 near key technical levels that determine its next move.
