Avalanche ($AVAX) is at a crucial point in its price action. With the price testing key resistance zones at $16–$17, traders and analysts are watching for signs of a breakout or potential price drop.
AVAX Approaches Key Resistance Levels: Could Lead to a Major Shift
Crypto Patel, a prominent analyst, recently shared on X that if $AVAX successfully breaks through this resistance, it could spark a move toward $100 or more. However, failure to break above these levels could trigger a decline back to lower support zones.
Resistance at $16–$17 has been a strong barrier for $AVAX in recent weeks. Despite several attempts to push past this range, the price has been unable to sustain above these levels, leading to a period of consolidation.
AVAX Could See Major Upside or Downside Depending on Support
In addition to the resistance at $16–$17, $AVAX’s price is also being influenced by key support levels. Historical price data shows that when $AVAX has tested the $10–$8 range, it has sparked significant rallies.
For example, in 2021, the price increased by over +1461%, and in 2023, it rallied by +650%. These accumulation zones have historically been an ideal buying point for long-term investors, which could lead to substantial gains if the price bounces from these levels again.
However, this pattern also carries risks. If the price fails to hold support at $8, analysts warn that $AVAX could enter a freefall, potentially dropping to the $3–$2 range.
This scenario would represent a severe decline from current levels, making it crucial for investors to monitor the price closely. The next few weeks will be crucial in determining whether $AVAX holds support or faces a deeper decline.