AVAX crypto is stabilizing near key support, with early bullish signals hinting at a potential rebound as participants watch for a breakout above the $17 level.
Despite a sharp cooldown in recent weeks, AVAX crypto is showing early signs of strength again. Buyers appear to be quietly stepping back in around the $16 mark, a level that’s drawn repeated defense from bulls. With indicators flashing the first hints of momentum recovery, participants are watching closely to see if this could be the start of AVAX’s next relief rally towards $20.
AVAX Price Action Shows Signs of Bottom Formation
Price action around the $16 region is starting to hint at possible stabilization for AVAX crypto. The latest structure shows a series of higher wicks rejecting the $15 zone, suggesting that sellers are beginning to lose strength while buyers quietly step in. The recent recovery candle closing above the 20-EMA indicates early momentum returning, though confirmation will depend on sustained closes above $16.50 to $17.00.
AVAX finds solid footing near $16 as early accumulation signals hint at a potential bottoming setup. Source: rektbuildr via X
Such structural reactions often mark the start of accumulation phases, zones where volatility compresses before expansion. If the price maintains above these short-term moving averages, it could pave the way for a medium-term reversal, setting the tone for recovery into the $18 to $20 range.
Bullish Divergence Signals Relief Rally Ahead
Momentum indicators are flashing the first bullish divergence in weeks. While AVAX crypto printed new lows, RSI began forming higher lows, a classic signal of weakening bearish momentum. Jesse Peralta highlighted this setup, noting the divergence between price action and oscillator strength, suggesting that a rebound towards $20 resistance remains within reach.
AVAX’s momentum shift sparks optimism as RSI divergence hints at a short-term recovery towards the $20 resistance zone. Source: Jesse Peralta via X
Technically, the downtrend line that has contained AVAX since mid-October now acts as immediate resistance. A breakout above it, coupled with RSI crossing back above 40, could trigger short-term continuation towards the $19.80 to $20 psychological barrier.
Smart Money Positioning Near AVAX Weekly Lows
Weekly charts show AVAX price testing a major support structure that’s been respected for months. Crypto Pulse points out that smart money often accumulates during such shakeouts, with liquidity engineered lower to fill large orders. The $14 to $15 band represents a multi-touch support zone, overlapping with the 0.786 Fibonacci retracement from its prior impulse wave.
Smart money appears to be accumulating near AVAX’s weekly lows. Source: Crypto Pulse via X
Volume behavior reinforces this narrative: as price dips, relative volume spikes, indicating active absorption rather than panic selling. If the shakeout thesis holds true, it would align with broader market behavior seen before past AVAX rallies, where false breakdowns preceded sharp upside reversals.
Community Sentiment Remains Strong
Despite recent volatility, sentiment across the AVAX crypto community remains upbeat. Posts from Steven9000 reflect growing conviction that Avalanche could stage one of crypto’s strongest comeback stories. Many in the ecosystem emphasize network fundamentals and consistent developer activity, both of which have continued to rise even during price weakness.
This optimism suggests that confidence hasn’t been shaken, instead, holders appear to view the current dip as a long-term accumulation opportunity, similar to early-2023 behavior before AVAX’s previous surge.
Final Thoughts: What’s Next for AVAX Crypto?
AVAX price trades near $16.45, up roughly 1.9% over the past 24 hours, with a market cap above $7 billion and $833 million in daily trading volume. The market structure appears to be forming a potential base, but confirmation will depend on holding above $15 support while reclaiming $17 to $18 resistance.
If bullish divergence momentum continues and institutional accumulation intensifies, Avalanche could set up for a strong fourth-quarter rebound, targeting the $20 mark initially, followed by $24 in extension scenarios. Conversely, losing the $15 region would invalidate the short-term recovery narrative and expose deeper retests towards $13.
Avalanche’s current price is $16.45, up 1.94% in the last 24 hours. Source: Brave New Coin
Overall, technicals, on-chain behavior, and sentiment together hint that AVAX price prediction may be entering the early stages of its next recovery phase.