Date: Wed, February 5, 2025 | 05:37 AM GMT
In the cryptocurrency market today, Bitcoin (BTC) and Ethereum (ETH) have stabilized after a sharp sell-off, with BTC consolidating near $98K and ETH hovering around $2,700.
Major altcoins , including Avalanche (AVAX), are also showing signs of a potential reversal following recent declines.
Source: Coinmarketcap
AVAX has seen a 38% correction over the past 30 days but is now attempting to regain momentum.
Holds Key Support
The weekly AVAX chart shows that the price has been trading within a three-year-long descending triangle pattern. The recent downtrend, which began on December 2, was triggered by a rejection from the upper resistance at $55.79.
Avalanche (AVAX) Weekly Chart/Coinsprobe (Source: Tradingview)
The sell-off intensified after the announcement of new trade tariffs by former U.S. President Donald Trump, leading AVAX to test a critical support zone. The price dropped to a low of $21.20 but has since rebounded to around $26.80, with the 100-day Simple Moving Average (SMA) providing additional support.
Historically, this level has acted as a strong rebound zone. If AVAX follows past trends, a bounce could push the price toward the 50-day SMA (green line), and if it breaks above that, the next target would be the upper resistance of the triangle at approximately $38.
Is a Bounce Back Ahead?
At the moment, AVAX is showing resilience at a crucial support level. The next major move will depend on Ethereum (ETH) and the broader market sentiment. If ETH continues its recovery, it could provide the necessary momentum for AVAX to break out of its descending triangle pattern and initiate a bullish trend.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing in cryptocurrencies.
