Avalanche (AVAX) has been experiencing a notable slowdown in whale activity since the start of February, casting doubt on its short-term price trajectory. Large transactions, typically a catalyst for price fluctuations, have significantly decreased, leaving AVAX in a state of consolidation beneath a crucial trendline resistance since February 6th. This pause in major moves raises questions: will AVAX face further downward pressure toward the $22 support level?
AVAX Consolidates Below Key Resistance
AVAX has been in a tight consolidation pattern below a major trendline resistance that has held firm since early August. This suggests a lack of strong bullish momentum, as large players have refrained from making significant moves in recent weeks. Historically, periods of consolidation like this have often been followed by significant price action, but the current absence of whale-driven volume could mean trouble for AVAX’s ability to break through the resistance. Instead, the price may revisit lower support levels, with $22 standing out as a key zone to watch.
Will $22 Serve as a Bullish Reversal Point?
If AVAX fails to gain enough buying momentum to surpass the trendline resistance, a pullback to $22 appears likely. This price level has long served as a critical accumulation zone, with large players potentially eyeing it as a buying opportunity. Should the price dip to $22, it could act as a launchpad for a bullish revival, where buyers could step in, drive demand, and shift the trend upward.
Also Read: Avalanche (AVAX) Battles $35 Support: Key Levels and On-Chain Trends to Watch
Although the market conditions suggest a potential drop to $22, investors should remain patient. This level could be the tipping point for AVAX’s next move, offering a potential entry point for those looking to capitalize on a possible bullish reversal.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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