3 Key Insights:
- AVAX faces repeated rejections at $26.50, keeping bearish momentum alive toward the $16 support zone.
- Weekly chart shows long consolidation, with AVAX trapped between $8.61 and $32 since mid-2022.
- Market cap under $10B leaves room for growth if altcoin cycle sparks renewed AVAX demand.
Avalanche (AVAX) is trading at $23.65, with a 24-hour volume of $613.4 million. The token has gained 0.15% in the last 24 hours but is down 7% over the past week. Technical charts show repeated resistance at $26.50, raising the possibility of a deeper move toward $16 support.
Daily Chart Shows Rejection at $26.50
The AVAX/USDT daily chart indicates that $26.50 has become a key resistance level. Price has been rejected at this point several times, with upper wicks marking failed breakouts. The most recent reversal has pulled AVAX back below $24, showing persistent selling pressure near the top of the channel.
Ali, a market analyst,
“Avalanche $AVAX faced another rejection at $26.50. Channel pattern suggests a move toward $16 support.”
The dotted projection on his chart outlines a path that could see AVAX test $21, then $19, before hitting the $16 lower boundary if bearish momentum continues.
Support remains around $23, which could slow the decline if buyers return. However, repeated failures at $26.50 suggest bears remain in control until a breakout occurs.
Weekly Chart Signals Prolonged Consolidation
On the weekly timeframe, AVAX continues to trade within a wide accumulation range. Since peaking near $147 in 2021, the token has struggled to break above the $32 resistance zone. Current weekly averages show the price capped under the 99-week moving average at $29.35, with shorter averages (MA7 at $24.42 and MA25 at $21.27) squeezing tightly around the present level.
Jay.eth commented,
“$AVAX hasn’t seen the growth we’ve expected to see in the past few years, but come alt season, expect big moves.”
The chart reflects this stagnation, as AVAX has mostly traded between $8.61 and $32.14 since mid-2022.
Market Structure and Long-Term Outlook
Avalanche’s current market cap is below $10 billion, far from its $30 billion peak. The fully diluted valuation (FDV) sits near $17 billion, with most tokens already in circulation aside from foundation allocations. This reduces the risk of heavy dilution compared to projects with larger upcoming unlocks.
If market conditions improve, a breakout above the $29–32 range could open the path to higher levels, with $62–93 as potential longer-term targets. On the downside, failure to hold above $20 could bring AVAX back toward its $8 support zone.
The broader accumulation base suggests that while short-term pressure is evident, AVAX remains in a structure that could support stronger moves if liquidity returns during an altcoin cycle.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/analysis/avalanche-rejected-at-26-5/