AVAX Technical Outlook
Avalanche has been trading within a descending channel since the beginning of 2024. Lower and upper borders of this falling channel have worked properly so far. The price dropped below the channel at times, yet it did not remain there and seems to have climbed into the channel again.
AVAX is currently trading at the middle border of this channel and above the horizontal resistance level of $23.80. It can be stated that this zone is a key area as it previously worked as both support/resistance and is the channel’s middle line. If the price can hold here, the next target will be the area of $30.23–$32.91. Around this level, a strong sell pressure might be observed as it intersects with both the horizontal resistance and the channel’s upper border.
In terms of a pullback scenario, the first support zone to hold the price is $21.50–$18.74. If lost, the price could test the lower border of the channel and the level of $13.23 again.
Summary:
- From a wide perspective, falling channel pattern is valid.The price is testing the resistance level of $23.80.If the price can hold above it, the target will be:→ $30.23→ $32.91 (upper border of the channel)
- In the event of a pullback, the support levels are as follows:→ $21.50→ $18.74→ $13.23 (lower border of the falling channel)
Downtrend could end if the price can breakout; however, the price is trading within the channel.
These analyses, not offering any kind of investment advice, focus on support and resistance levels considered to offer trading opportunities in the short and medium term according to the market conditions. However, traders are responsible for their own actions and risk management. Moreover, it is highly recommended to use stop loss (SL) during trades.
