AVAX Battles $24 Support Amid Market Uncertainty

• AVAX drops 7% in a week despite ascending channel pattern.
• Technical indicators show increasing selling pressure.
• Price targets: potential rise to $39.30 or drop to $17.30 depending on market direction.

Avalanche (AVAX), despite forming an ascending channel pattern on the daily timeframe, has consistently delivered negative returns to investors, raising questions about its potential for recovery in the current altcoin season.

The token’s recent performance paints a concerning picture, with no movement in the last 24 hours and a more substantial 7% weekly loss. This short-term weakness extends into longer timeframes, as evidenced by an 11% monthly decline and a disappointing -34.16% year-to-date return.

Technical indicators suggest mounting bearish pressure, with the Relative Strength Index (RSI) displaying a significant downward trajectory.

Can Avalanche reclaim its surge?

This decline in the RSI signals an increasing dominance of selling pressure over buying activity in the market.

Furthermore, the Simple Moving Average (SMA) continues to act as a persistent resistance level on the daily chart, suggesting potential challenges for price recovery in the coming week.

Looking ahead, AVAX’s price trajectory hinges on its ability to maintain key support levels while capitalizing on any potential market recovery. A bullish reversal scenario could see AVAX retesting the $31.50 resistance level, with sustained positive momentum potentially driving the price towards $39.30.

However, market participants must remain cognizant of downside risks. If current market uncertainty intensifies, AVAX could find itself retesting the critical support trendline at $24.30.

A breach of this level, particularly amid bearish Q4 conditions, could trigger a more substantial decline towards $17.30.