AVAX Rebounds From Key Support After 6% Plunge

Avalanche AVAX found support after a substantial decline on the short-term, according to CoinDesk Research’s technical analysis model.

The token is down 5.6% in the last 24 hours, underperforming the CoinDesk 20 — an index of the top 20 cryptocurrencies by market capitalization, excluding stablecoins, memecoins and exchange coins — which lost 3.2% in the same period of time.

Technical Analysis

• AVAX-USD pair declined 6.46% before staging a recovery.

• A high-volume support zone emerged around $20.76-$20.85, where strong buying interest reversed the downtrend.

• Price action formed a descending channel with resistance at $21.65, which was broken when AVAX climbed above $21.20.

• V-shaped reversal pattern formed with strong buying momentum emerging around the $21 psychological support level.

• Heavy accumulation occurred, with trading volume exceeding 23,000 units per minute.

• The $20.76-$21.00 zone may serve as a significant demand area for near-term price action.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.