- AVAX has corrected 38% over the past 30 days but is showing signs of potential reversal, currently trading around $26.80 after rebounding from a low of $21.20.
- The cryptocurrency is trading within a three-year-long descending triangle pattern, with recent downtrend triggered by rejection from upper resistance at $55.79.
- AVAX is holding at a historically strong support zone near the 100-day SMA, which has previously acted as a rebound level.
- If the support holds and follows past trends, AVAX could bounce toward the 50-day SMA and potentially target the triangle's upper resistance around $38.
Date: Wed, February 5, 2025 | 05:37 AM GMT
In the cryptocurrency market today, Bitcoin (BTC) and Ethereum (ETH) have stabilized after a sharp sell-off, with BTC consolidating near $98K and ETH hovering around $2,700.
Major altcoins, including Avalanche (AVAX), are also showing signs of a potential reversal following recent declines.
AVAX has seen a 38% correction over the past 30 days but is now attempting to regain momentum.
Holds Key Support
The weekly AVAX chart shows that the price has been trading within a three-year-long descending triangle pattern. The recent downtrend, which began on December 2, was triggered by a rejection from the upper resistance at $55.79.
The sell-off intensified after the announcement of new trade tariffs by former U.S. President Donald Trump, leading AVAX to test a critical support zone. The price dropped to a low of $21.20 but has since rebounded to around $26.80, with the 100-day Simple Moving Average (SMA) providing additional support.
Historically, this level has acted as a strong rebound zone. If AVAX follows past trends, a bounce could push the price toward the 50-day SMA (green line), and if it breaks above that, the next target would be the upper resistance of the triangle at approximately $38.
Is a Bounce Back Ahead?
At the moment, AVAX is showing resilience at a crucial support level. The next major move will depend on Ethereum (ETH) and the broader market sentiment. If ETH continues its recovery, it could provide the necessary momentum for AVAX to break out of its descending triangle pattern and initiate a bullish trend.
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