Avalanche (AVAX) Bounces Off Support—40% Rally Incoming?
Avalanche’s native token AVAX is carving out a rebound from its recent buy zone, sparking speculation of a major upside move. Traders are eyeing key resistance levels—will this altcoin defy the crypto winter or just another dead cat bounce?
The Setup: After a 30% correction from its 2025 highs, AVAX found footing near $42—a level that previously acted as springboard for rallies. The RSI creeping out of oversold territory hints at accumulating momentum.
The Target: A clean break above $51 could trigger algorithmic buying, with chartists projecting a run toward $70 (+40%). Of course, this assumes Bitcoin doesn’t decide to rug-pull the entire market—again.
The Catch: Trading volume remains lukewarm, and let’s be honest—most ’technical breakouts’ in crypto these days last about as long as a Wall Street analyst’s conviction. But for degens chasing the next green candle? Game on.
In the times when Bitcoin price is struggling to rise above $95,000, Avalanche price flashes huge potential of a bullish continuation. The token has been forming consecutive lower highs and lows after the rejection from the pivotal range at $22. In a wider perspective, the bears seem to have held a strong grip over the rally, but the AVAX price is flashing a hidden bullish divergence that may clear the path above the local threshold.
The AVAX price underwent its second successful rejection from the neckline zone, which has flashed a huge opportunity to take short positions. With the markets bleeding, there is a huge possibility that the price could take a dip towards the lower target that could complete a massive double top pattern, which could further harm the AVAX price rally in the long term. Meanwhile, the technicals do not seem to be in favor of a massive pullback, while a tight accumulation could prevail for some time.
The bears have restricted the rally below $22 since the major pullback in March, which seems to have drained the strength of the bulls. Besides, the Bollinger bands have begun to squeeze as the volume drops, hinting towards a drop in the volatility. Meanwhile, the CMF or the Chaikin Money Flow, has triggered a bullish rebound from the levels not visited since July 2024. Each time the weekly CMF rebounds from the lows below -0.15, a huge upswing follows with nearly a 200% price rise.
Hence, the AVAX price could trigger a strong rebound if the levels close above $20 and sustain for a day or two. With this, a rise above $22 could be validated that may further push the price above $25 and validate a rise above the bearish captivity. Failing to do so may keep the Avalanche price consolidated below $22 until a huge bullish volume creates massive buying pressure over the crypto.
