Avax is facing a price correction as bearish pressure rises. Will Avalanche rebound or dip further?
Avalanche is trading in a corrective structure while bearish momentum prevails. As of press time, the coin is trading at $19.14, a 11.49% price decline over the past 7 days. Per CoinMarketCap, AVAX has dropped 3.05% despite a high trading volume (+50.31%) in the past 24 hours, suggesting heightened selling pressure.
AVAX technical setup
Using Elliott Wave principles, AVAX’s technical setup suggests that the coin may be finding support before a significant price uptrend. Despite the bearish momentum, AVAX shows signs of strength on the 4-hour chart. The coin is finishing its wave 2 correction with a pullback from the golden Fibonacci levels of 61.8% and 78.6%. As a result, the $19-$20 zone could be AVAX’s springboard before the next jump.
According to an analysis by More Crypto Online shared on X (formerly Twitter):
“While the structure still allows for a potential low to have formed, the depth of the wave (2) retracement raises serious doubts about immediate upside continuation. A break above $22.80 would be the first real signal that wave (2) may have completed”
The current technical setup suggests that AVAX could be facing another low before a substantial price reversal. If Wave 3 begins, the bulls could enter positions aiming for the $30-$30 zone by Fibonacci extensions.
The $17 zone acts as a key demand zone for triggering a bullish momentum. If AVAX breaks below this level, its apparent bullish structure will be invalidated. A strong breakout above $22.80 could signal the end of wave 2. Traders are watching for the confirmations around these key levels to understand AVAX’s next moves amid the prevailing bearish momentum.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
