Avalanche (AVAX) has entered a phase of consolidation after breaking below a significant support structure, leaving traders to assess the asset”s future direction. This sideways trading follows the loss of a long-standing wedge pattern that previously guided price movements, prompting concerns over the sustainability of current levels.
Market experts are divided in their outlook for AVAX. Some analysts caution that the prevailing weakness could lead to a decline toward the $9 zone, a level that has historically acted as a demand area during previous cycles. The breakdown below the $16–$17 range has converted former support into resistance, complicating recovery efforts.
According to analyst Ali, the failure of this key horizontal base has stripped away a crucial support mechanism that kept buyers engaged. Since the breakdown, AVAX has exhibited choppy price action, with each minor rally failing to gain momentum, indicating that sellers may still dominate trading sentiment.
On the other hand, a contrasting perspective comes from analyst PS Trade, who highlights that AVAX is currently positioned at the lower boundary of a multi-year channel. This channel has been a reliable reference for the asset”s broader trend and may serve as a significant support area. PS Trade emphasizes that the fundamentals of the Avalanche ecosystem remain strong, and the asset”s market capitalization of approximately $5.5 billion could provide a solid base for a reversal if buyers step in.
Should the channel hold, PS Trade outlines potential upside targets for AVAX, suggesting a conservative aim near $26, with a more ambitious target reaching the $41–$42 range. This divergence in analyst predictions underscores the critical juncture at which AVAX currently stands, as traders weigh the risks of a further decline against the possibility of a rebound from established support levels.
The unfolding situation around Avalanche is pivotal as traders remain on high alert, closely monitoring price developments that could dictate the next major shift in market sentiment.
