Support Zone Strengthens as AVAX Eyes Recovery
Avalanche’s native token, AVAX, is showing renewed bullish signs after rebounding from a critical support zone. The move comes shortly after a wave of selling pressure pushed prices down from recent highs, sparking concerns of a deeper correction.
The cryptocurrency had faced heavy resistance in the $26.50–$27.50 range, where sellers consistently capped upside momentum. This rejection sent AVAX lower, but the decline halted at a well-defined $23.00–$23.50 support band, marked in green on the chart.
Technical analysts note that this support area aligns with a previous breakout point, which often serves as a strong demand zone. “When price revisits a former breakout level, market psychology tends to favor buyers looking for re-entry opportunities,” said one market strategist.
The recent bounce has lifted AVAX back toward the $24.50 level, showing that buyers are attempting to regain control. Volume patterns indicate steady participation during the rebound, suggesting that traders are positioning for potential continuation if the market maintains above support.
Looking at the broader trend, AVAX broke out of a prolonged descending channel in late June, initiating a strong rally that carried it into August highs. The latest pullback appears to be a healthy retest within this larger uptrend, as long as the $23.00 zone remains intact.
“AVAX is at a pivot point,” According to BITX . “A sustained close above $25.00 could open the door for a re-test of the $27.00 resistance zone. On the other hand, losing $23.00 would shift sentiment and possibly trigger a move back toward $20.00.”
For now, the support near $23.00 is holding firm, and the price reaction suggests buyers are willing to defend it. Whether this rebound transforms into a full bullish reversal will depend on upcoming market momentum and how AVAX navigates the mid-$25.00 range in the days ahead.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.