• Avalanche tests the support of a symmetrical triangle, hinting at price compression before a potential breakout.
• Price remains below key moving averages (20, 50, 100, and 200 SMA), signaling short-term selling pressure.
• Key resistance levels identified at $30, $55, $80, and $120 for a potential AVAX recovery.

Avalanche (AVAX) is facing downward pressure as its price continues to decline amid broader market weakness. The token has slipped nearly 1.16% in the past 24 hours and recorded a 7.28% drop over the past week, signaling a short-term bearish sentiment among traders.

As of now, AVAX is trading at $17.37, accompanied by a 24-hour trading volume of $379.3 million, a 54.59% decrease from the previous day. Its current market capitalization stands at approximately $7.42 billion, reflecting reduced market activity and cautious investor behavior.

Source: CoinMarketCap

Also Read: Avalanche (AVAX) Set for Comeback: Analyst Sees Rally Toward $21.24!

Avalanche (AVAX) Technicals Hint at a Bearish Outlook

Avalanche (AVAX) is displaying a persistent bearish trend. The price remains positioned below all major moving averages, the 20, 50, 100, and 200 SMAs, ranging between $23.8 and $29.8. This alignment highlights heavy selling pressure, weak buyer interest, and strong resistance zones overhead, indicating limited upward momentum in the near term.

Source: TradingView

The RSI stands at 39.87, which shows weak momentum but isn’t oversold yet. The other indicator, MACD, displays a bearish crossover since both lines are below zero. Taking both into consideration, there’s a bearish trend forthcoming unless major buying volumes are introduced.

Avalanche (AVAX) Price Pattern Signals $120 Rally Ahead

Moreover, the crypto analyst, Jonathan Carter, believes that Avalanche (AVAX) continues to demonstrate strength because it’s testing the ascending support line of a symmetrical triangle in its weekly chart. However, a symmetrical triangle shows that there’s a phase of price compression or a period wherein volatility will contract before a significant move.

The prevailing scenario shows that the level of supporter holdings remains quite strong, which serves to create room for a rebound in the coming market sessions. Technical analysis shows increased buying momentum coupled with fewer selling pressures in the market, which are common indicators prior to market reversals. AVAX can thus be poised for a major market rally.

Source: X

Analysts have identified major target zones around $30, $55, $80, and $120. These are major points of resistance in AVAX’s upward journey. A breakout could trigger a major continuation phase in AVAX. As there’s compression in the weekly timeframe, Avalanche could potentially witness one of its breakthroughs yet.

Also Read: Avalanche on the Edge: Can AVAX Recover from $16.94 and Rally Toward $32.40