Avalanche’s AVAX Establishes Support Amidst Price Fluctuations

Avalanche’s AVAX token has shown marked volatility, experiencing a decline from a recent peak of $21.48, subsequently dropping to $20.25, establishing vital support levels.

Key Insights:

• After surging by 3.72% from $20.71 to $21.48, AVAX saw a sharp reversal, establishing support between $20.25 and $20.30 as indicated by CoinDesk Research’s technical analysis.
• A notable selling pressure appeared in the $21.40-$21.50 range, with trading volume surpassing 870,000.
• Recent data highlights AVAX developing a descending channel accompanied by spikes in selling volume.

Further Observations:

• Indicators suggest that the $20.62-$20.63 zone is becoming a crucial floor for short-term price behaviors, showing accumulation interest at these levels.

Market Performance:

Meanwhile, the CoinDesk 20 index, which tracks the top 20 cryptocurrencies by market cap (excluding stablecoins and memecoins), has risen 1.1% over the last 24 hours.

Technical Analysis

• Establishment of a clear resistance zone from $21.40-$21.50 amid heightened selling activity.
• Support solidified in the $20.25-$20.30 range, evidenced by significant volume.
• The price action suggests a descending channel formation, with temporary support forming at $20.62, leading to subsequent recovery.
• The hourly low aligns with the 24-hour support zone, reinforcing the idea that $20.62-$20.63 may function as a critical floor.