Date: Tue, March 04, 2025 | 09:18 AM GMT
The cryptocurrency market is facing intense selling pressure, with Bitcoin (BTC) tumbling over 8% following U.S. President Donald Trump’s announcement of a 25% tariff on goods from Mexico and Canada. This move triggered a broader market downturn, erasing the gains from Sunday’s “crypto strategic reserve” pump and resulting in over $980 million in liquidations across the market with in last 24 hours according to coinglass.
Amid this turbulence, Avalanche (AVAX) has been hit hard, experiencing a sharp 13% decline in the past 24 hours, extending its month-long correction to 35%.
Testing Key Support
The weekly AVAX chart reveals that the price has remained in a prolonged descending triangle pattern since the peak of the last bull run in 2021. The most recent rejection from the upper resistance at $55.79 on December 2 marked the beginning of another significant downtrend.
Following the tariff announcement, selling pressure intensified, pushing AVAX into a critical support zone between $17 and $23. Currently, the price hovers around the $20 mark, sitting in the middle of this key range. This level has historically served as a strong demand zone, leading to multiple rebounds in the past.
If the support hold, AVAX could see a relief bounce targeting the 100-day moving average. A break above this level would open the door for a move toward the upper resistance of the descending triangle at around $35.
However, failure to hold this support could lead to a deeper correction, potentially dragging the price toward the next major support level at $11-$12.
What’s Next?
AVAX finds itself at a make-or-break moment, with its next major move heavily dependent on broader market conditions, particularly the performance of Bitcoin and Ethereum (ETH). Technical indicators such as the MACD are still flashing bearish signals, suggesting that downward momentum is not yet exhausted. However, a bullish crossover could indicate the beginning of a reversal in the coming weeks.
Traders and investors should closely watch whether AVAX can maintain its support level, as a successful defense could trigger a strong recovery, while a breakdown may signal further downside risk.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
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