Avalanche AVAX struggled to maintain short-term momentum, with trading patterns showing a descending channel formation despite attempts to stabilize around key support levels, according to CoinDesk Research technical analysis model.
The token has fallen 1.4% in the last 24 hours to $18.43 while the CoinDesk 20 — an index of the top 20 cryptocurrencies by market capitalization, excluding stablecoins, memecoins and exchange coins — lost only 0.5%.
Recent high-volume selling pressure suggests continued bearish sentiment in the short term, though strong buying emerged during recent dips.
Technical Analysis
• AVAX experienced significant price volatility over the past 24 hours, establishing a range of 0.84 (4.5%) between the high of $18.93 and low of $18.09.
• The asset found strong support at the $18.15-$18.25 zone, while facing resistance near $18.85-$18.90.
• The price action formed a descending channel, with recent high-volume selling pressure suggesting continued bearish sentiment despite attempts to stabilize around the $18.40 level.
• AVAX experienced a V-shaped recovery, slipping from $18.35 to a low of $18.09 with exceptionally high volume (52,056 units) before rebounding to $18.40.
• The recovery gained significant momentum when the price broke through resistance at $18.27 on volume exceeding 67,000 units, establishing a new support zone around $18.33-$18.35.
• The uptrend culminated in three consecutive zero-volume minutes suggesting potential consolidation before the next price movement.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.