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.