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
Source: NewsBTC.com
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