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Avalanche ($AVAX) is currently trading at a crucial level after a 24% retrace that began last week. The crypto market is experiencing extreme fear and uncertainty, with most altcoins hovering near yearly lows. Analysts and investors closely monitor $AVAX’s price action as the market remains volatile.
Top analyst and trader Kaleo has shared his insights, predicting $AVAX may dip further before a recovery occurs. This forecast has caught the attention of many, given the current market conditions and the pressure $AVAX faces.
The coming days will be pivotal in determining whether $AVAX can find support and begin its recovery or if it will continue to decline along with other altcoins. As the situation unfolds, the stakes are high for both short-term traders and long-term investors.
Avalanche Holding Above $20
Avalanche ($AVAX) has entered a consolidation phase after experiencing aggressive corrections, resulting in a staggering 73% loss in its price since March. This significant drawdown has captured the attention of many analysts and investors, who are now closely monitoring $AVAX’s next moves.
Among them is top analyst and investor Kaleo, who has shared a detailed analysis of X, drawing comparisons between the current price structure of $AVAX and its performance in 2021.
That year, $AVAX witnessed a substantial pump, followed by a massive correction, before embarking on an explosive rally that propelled it to new all-time highs. Kaleo suggests that a similar pattern could unfold now, indicating that $AVAX might be on the brink of a new uptrend. His analysis shows that $AVAX is expected to dip to the low $20 level before starting a strong recovery.
Kaleo’s prediction appears to be holding, as $AVAX has managed to stay above the critical $20 support level. This resilience suggests potential strength and indicates that the next target could be the $30 mark if the current support is maintained. Investors are watching these levels closely, as they could signal the beginning of a significant upward move for $AVAX shortly.
$AVAX Technical Analysis
Avalanche ($AVAX) trades at $22.22, following a modest 4% bounce from the $21.17 low set on Sunday. For bullish momentum to build, $AVAX needs to reclaim the 4-hour 20 moving average (MA) at $23.75.
This level is a crucial indicator of short-term strength, as it often marks the transition to a more consistent pattern of higher highs and higher lows when the price stays above it.
A sustained move above $23.75 could set the stage for $AVAX to target the critical $30 level. Breaking through $30 is essential for reversing the current bearish structure, as it would likely trigger a more rapid recovery.
However, if $AVAX fails to hold above $20, it could signal further downside potential. The price may seek lower demand levels in such a scenario, with $17 as the next significant support.
Featured image from Dall-E, chart from TradingView
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