- AVAX price hovers at $19.00 support, with a breakdown risking a sharp move lower toward the $17.00 region.
- Technical chart shows AVAX below its 20-day SMA as the price nears the lower Bollinger Band at $18.39.
- MACD indicator shows negative momentum, with both lines in bearish territory and red histogram bars expanding steadily.
Avalanche (AVAX) is currently trading near a key support level at $19.00 as the bears grow more possible on the daily chart.
AVAX Holds Key Support Amid Range-Bound Structure
According to Alpha Crypto Signal, AVAX remains within a horizontal trading range, with its price currently hovering near the channel’s bottom at $19.00. Despite persistent selling pressure, the asset has yet to confirm a breakdown from this level.
The tweet notes that if buyers manage to defend this price area once more, a potential rebound toward the $22.00 mid-range could occur. However, a firm close below $19.00 would likely expose AVAX to a sharper move downward toward the $17.00 level.
This holding pattern keeps AVAX range-bound for now, although pressure is mounting. The current price of AVAX stands at $19.12, marking a slight 0.93% gain in the past 24 hours, but still reflecting an 8.87% loss over the past week.
Technical Indicators Signal Growing Downside Risk
From a technical standpoint, the daily chart shows that AVAX is now sitting below the 20-day Simple Moving Average at $21.09, adding to the near-term outlook of bearishness.
Price action is similarly approaching the lower Bollinger Band at $18.39 for declines in volatility with the possibility of further downside movement. The Bollinger Bands continuing to narrow supports the notion of a consolidating market, with risk tilted to the downside.
The bearish thesis also has the MACD indicator working in its favor. The MACD line is currently at -0.58, which is below the signal line at -0.44 and both lines are in negative territory. The increasing red histogram bars are indicating a stronger downward momentum.If the price drops abruptly below the $18.39 area, there is a good chance it drops to the $17.00 level quickly.
Bulls Must Reclaim Key Levels to Regain Control
The first thing bullish traders need is that they will need to be above the $21.00 level to shift short-term momentum. Until then, trend bias remains tilted toward further weakness.
Volume will also play a crucial role. Without a rise in buying activity at current levels, the risk of a breakdown increases. Traders are advised to monitor support zones closely, especially with AVAX testing the lower edge of its range.
