- AVAX nears a key demand zone at $14.66, signaling potential accumulation and a possible bullish reversal amid fading bearish momentum.
- A breakout above $22.71 could confirm a W-shaped recovery, with analysts eyeing a rally toward $47.50 by July 2025, pending resistance at $35.26.
- Historical patterns suggest a potential repeat of AVAX’s November 2024 breakout, reinforcing bullish sentiment if key levels are surpassed.
After months of consistent bearish pressure, expert Lucky says AVAX is on the verge of bottoming out. The coin has dropped from its peak of $52.50 in December 2024 to its current price of $15.65. In the upcoming months, there may be a trend reversal, though, as momentum seems to be changing. AVAX is nearing a critical demand area.
Bearish Trend Nearing Exhaustion
Since December 2024, AVAX has been trading within a descending channel. This downtrend has been marked by consistently lower highs and lower lows. Besides, price action has remained constrained between blue parallel lines that define the channel’s boundaries.
Recently, AVAX tested the lower boundary near the $14.66 daily low. This level coincides with a historically strong demand zone. Such zones often indicate potential accumulation before a price surge. Moreover, the decreasing bearish momentum suggests a possible bottom formation.
Bullish Reversal on the Horizon?
AVAX may be getting ready for a bullish reversal, according to technical indicators. A possible W-shaped pattern of recovery is present. Consequently, if AVAX breaks above key resistance at $22.71, bullish momentum may strengthen.
Furthermore, analysts project an upside move beginning in May 2025. A green arrow on the chart indicates a potential rally towards $47.50 by July 2025. Before reaching this target, AVAX will likely face resistance at $35.26. Breaking above this level could confirm the end of the bearish trend.
Additionally, historical price action supports the reversal scenario. In November 2024, AVAX formed a bullish flag, followed by a sharp breakout. This led to its $52.50 peak in December. If history repeats, a similar breakout from the current demand zone could drive a substantial price increase.
