Avalanche (AVAX) Tests Key Support Zone as Buyers Eye Rebound

• Avalanche is near $25, testing a crucial support level that has held during past corrections.
• A rebound could push AVAX toward $50, while failure may lead to a drop below $20.
• The buy zone presents a chance for long-term accumulation at current price levels.

Avalanche is currently trading at $24.966, marking a 0.33% daily decline, as highlighted by Charting Guy. The token has entered a key buy zone, indicated by the green band on the price chart. This zone suggests that AVAX is at a potential accumulation level, where long-term buyers may consider stepping in. The price action also shows significant consolidation, hovering closer to the lower bounds of this critical area.

Navigating the Current Range: AVAX’s Support and Resistance

The price chart reveals a clear structure, with the green band acting as a strong support zone and the red band serving as a resistance ceiling. Over the past year, AVAX has oscillated between these levels, with multiple tests of both zones. The current price of $24.966 is near the lower band, which historically has been a point of reversal for the token.

Resistance remains firmly set above the $70-$80 range, marked by the upper red band, while the price action has struggled to sustain momentum beyond mid-level resistance at $50-$55. This suggests that for AVAX to make any meaningful upward movement, it will need to break out of its current consolidation and reclaim higher support zones.

Volatility Trends and Long-Term Prospects

The chart demonstrates a notable increase in volatility during late 2024, when AVAX briefly surged above $60, only to retreat back into the range. Despite these fluctuations, the green band has consistently provided a safety net for the token’s price, preventing deeper corrections.

For now, AVAX traders are keeping a close watch on the $25 level as it aligns with the lower boundary of the buy zone. A failure to hold this level could lead to a drop toward

$20, while a successful rebound may see AVAX attempt to retest mid-range resistance.

Analyst’s Perspective: Time to Accumulate?

Renowned analyst Charting Guy underscores the importance of the current buy zone for AVAX, describing it as an optimal level for accumulation. He suggests that the confluence of historical support and low price levels presents a unique opportunity for long-term holders to enter the market. However, caution is advised, as further downside remains a possibility if the broader market fails to recover.

With technical indicators pointing toward a potential bottom, AVAX could be gearing up for a reversal. Whether this buy zone leads to a sustained rally or further consolidation will depend on market sentiment and AVAX’s ability to attract renewed interest.