Can Avalanche’s AVAX Make a Comeback? Key Zones That Could Impact Its Future

Avalanche (AVAX), despite maintaining a market capitalization in the billions, has faced considerable challenges over the past few years. The coin gained significant attention during the DeFi boom of 2021-2022, but since then, its trajectory has mostly been downward, punctuated only by a few recoveries. However, as the market appears to be entering another phase of accumulation, coins like AVAX are starting to regain public interest, prompting questions about their potential revival.

Key Takeaways

Avalanche (AVAX) has faced significant challenges since the DeFi boom, with a market cap still in the billions.
Recent attempts to recover the price above $10 have been unsuccessful, maintaining the bearish trend.
Critical resistance points for AVAX are at $9.75, $9.82, and $10.28; failure to surpass these could lead to further declines.
Potential support levels to watch are at $9.48, $9.06, and $8.71, where bulls may attempt to defend against further drops.

Common mistakes and practical tips for purchasing AVAX

Possible Reasons for Further AVAX Declines

Crypto analyst RLinda has provided insights into the recent price movements of AVAX and the prevailing bearish conditions affecting it. Despite some recovery attempts, the coin has continued to trend downward, and current declines show no signs of abating.

Recently, there was an effort to push the digital asset’s price above $10, but it eventually fell back, indicating that AVAX remains trapped within a wider bearish trend. The sell-off highlights that negative sentiment prevails among investors, with many seizing opportunities to offload their holdings.

Testing the resistance at $10 has established this level as critical for any bullish momentum to develop. The analyst notes that the AVAX price is now sending mixed signals due to its current resistance and support zones.

Avalanche AVAX price Source: TradingView

At present, the initial major resistance level is around $9.75, a zone that has frequently been associated with price rejections in previous instances. Even if this resistance is surpassed, it doesn’t guarantee that the cryptocurrency is safe; there are still hurdles at $9.82 and $10.28 that must be overcome, or AVAX could face further declines.

Should bulls encounter rejection at these resistance levels, and if the AVAX price drops below $9.75 after a local short squeeze, the analyst warns that this could signal additional weakness, potentially leading to a drop to the $8.7-$9.0 range.

In the event of a downturn, the first support level is positioned at $9.48. Following that, there is secondary support forming at $9.06, before reaching $8.71, where bulls might make their final stand.

Avalanche AVAX price chart from Tradingview.com Price moves above $10 | Source: AVAXUSDT on TradingView.com