Avalanche (AVAX) Regains Ground Following Sudden Sell-Off
Avalanche’s native token AVAX has surged 6% to $19.65 after experiencing a sharp decline triggered by broader market tensions. The rebound follows a high-volume sell-off driven by a heated social media dispute between U.S. President Donald Trump and Tesla CEO Elon Musk over the U.S. national debt.
Despite the turbulence, AVAX has reclaimed nearly 58% of its recent losses, bouncing from a low of $18.48 to a local high of $19.76.
Strong Accumulation at Key Support Zones
Technical analysis shows solid buyer accumulation around the $18.48–$18.88 zone, supported by a spike in trading volume. Analysts have observed an ascending channel formation, a bullish continuation pattern, with short-term resistance identified at $19.76.
Consistent higher lows over the last 14 hours reflect strengthening upward momentum, with the $20 psychological barrier now in focus.
Technical Overview
- AVAX fell 8.14% from $20.14 to $18.48 during peak market volatility.
- Support was confirmed at $18.48, where volume surged to 3.65 million units.
- Price steadily climbed back to $19.65, regaining 57.8% of its losses.
- Notable buying volume spikes (45,299 and 64,948 units) coincided with rapid price recoveries.
- Support has stabilized around $19.53–$19.55, acting as a foundation for the next leg up.
- The current pattern shows bullish continuation within an ascending price channel, with resistance at $19.76.
Broader Market Context
While AVAX rebounded strongly, the CoinDesk 20 Index dropped 0.85% in the past 24 hours, reflecting overall market hesitation. AVAX itself posted a marginal 1% 24-hour loss before the latest recovery phase.
The market remains sensitive to macro-political events, but AVAX has demonstrated resilience through buyer-driven momentum and technical recovery.
Outlook for AVAX
If the current trend continues, AVAX may soon challenge the $20.00 resistance level, which is a key psychological and technical threshold. A breakout above this level could indicate further bullish continuation, especially if volume remains elevated.
Investor confidence appears to be returning, with volume-supported recoveries suggesting institutional interest at current price levels.
