Key Insights
- AVAX holds near key support as traders watch for stability after October’s sharp correction and rising volatility.
- The upcoming $35M token unlock adds pressure while network activity softens and fees move lower this week.
- AVAX trades below major averages, yet a falling wedge pattern signals a possible rebound if support levels hold.
AVAX is moving toward a zone that traders have tracked for weeks, and the current price action is raising questions about a possible reversal. The market has shown heavy swings this month, yet the token is still holding a critical support level.
AVAX Market Stabilization Near Key Levels
AVAX is trading near $19 to $20 support zone after sharp losses earlier in October. AVAX has been sliding for most of the month, yet many traders expect the market to stabilize if the current range holds. The recent drop followed a heavy correction that moved across the wider crypto market and pushed several assets into lower ranges.
Chart data shows that short-term indicators are now cooling. The short-term bubble risk reading has moved back to neutral, and this shift has often marked periods of calm in past cycles. Many traders see these levels as zones where long-term buyers begin to add positions, though the market still shows weak momentum.
Concurrently, AVAX remains below 20-week moving average and mid-Bollinger Band. This puts a strain on the immediate trend and the token is now approaching the same starting level as previous market bottoms. Should the price revert to the area of more than 24 up to 25, the traders might consider it an indicator of a recovery.
AVAX Faces Pressure as October Decline Weighs on Price
Recent market action shows AVAX trading below the 20-day, 50-day, and 200-day moving averages. These levels often act as trend markers, and the current setup shows that sellers remain active. Yet the token still trades above its October low near $17, and this level has held several times this year.
Daily indicators show mixed signals. The RSI sits near the mid-thirty level, and this often matches an oversold phase. The MACD remains bearish, yet the Stochastic reading shows that selling pressure may be weakening. Analysts have noted that the lower Bollinger Band sits close to $17, and many will watch that level if the price continues to fall.
Transaction data from the network shows a decline this week. The number of on-chain transactions has dropped, and fees have fallen as well. The upcoming token unlock on October 24 also adds pressure, as the new supply could increase selling risk. Yet Avalanche still sits among the most active chains for stablecoins and real-world assets, and this activity continues to attract institutional interest.
Analysts Watch Falling Wedge Pattern as Recovery Outlook Builds
On the two-week chart, a falling wedge has already begun to form, and this indicator is typical of a trend shift. The bottom of the wedge is close to $14 and the analysts anticipate the buyers to protect the price area in case the price is taken somewhere near the price level. The range between $14 and $20 appears to be the focal accumulation zone of the current cycle.
https://x.com/CryptoPulse_CRU/status/1979110423119986972?s=20
AVAX could move toward the $28 to $30 range if buyers step in and the token breaks above the upper trend line. This move would place the price back in the same region seen before the October correction. However, analysts will need to see a close above $24 to confirm early strength, and volume must rise to support any recovery.
