Avalanche (AVAX) experienced a short-term correction in the short term, currently trading at $31.89, down 3.51%.In the past 24 hours, AVAX has been traded at $1.63 billion in trading value, $13.47 billion in market capitalization, and 0.34% in market dominance. The token dropped by 3.51% during this time frame.
As per analyst CryptoPulse, AVAX is approaching two critical points of demand where it can see prices rebound. The first potential area of interest is between $29.8 and $30.5, and the other one also happens to be lower, in between $28.0 and $28.8.
Analysts note that the most critical level to pay attention to remains at $28. A fall lower than this level could trigger further weakness and violate any near-term bullish potential. However, in the event it settles in the recommended regions, AVAX could experience a near-term rebound, serving as a core purchase point for bulls targeting potential resistance.
The drop follows months of growing momentum, highlighting ongoing volatility in the cryptocurrency space. While under pressure, trading volumes and market cap for AVAX still indicate active interest in the token.
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AVAX is pressing against its moving averages, which currently act as resistance. Moving through these would position it for even higher targets. A clean-cut move above moving averages would be bullish, signifying a breakout, and would likely ease short-term bear pressure and divert attention to bullish terrain.
Crypto analyst REKTBuildr notes that the breakout can set $40 as a short-term objective. If AVAX maintains strength and breaks through resistance, buyers can take it higher still. These technical signals also highlight the importance of trend confirmation for investors aiming for medium-term returns in an uncertain market.
The breakout above strong resistance points like $34 would support the bullish case of AVAX. Holding these, it would be in a position to target $40 to $56. Larger macroeconomic trends would affect this setup, but an impeccable breakout will still be needed.
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