AVALANCHE NEARS KEY BREAKDOWN LEVEL THAT COULD SINK AVAX PRICE BY ANOTHER 65%

Is Avalanche (AVAX) on the verge of a massive price correction?Recent technical analysis suggests that AVAX is teetering on a critical support level, and a breakdown could trigger a dramatic 65% plunge.While AVAX showed a slight recovery, gaining 0.5% to reach over $31 on May 23rd, it remains confined within a trading range resembling a bearish pennant.This ominous pattern, coupled with bearish market sentiment, paints a concerning picture for the popular cryptocurrency. Avalanche nears key breakdown level that could sink AVAX price by another 65% - AVAX May Drop Another 65% if Avalanche Falls Below Key Support Level Fundamentals that are strongly bearish act as aInvestors are now watching closely to see if AVAX can hold its ground, or if it will succumb to the downward pressure.The coming weeks could prove pivotal in determining the future trajectory of AVAX, with potential for both significant losses and strategic buying opportunities. This paints the bearish target for the AVAX/USD pair at $11.50 by June 2025, down about 65% from today s price, as shown below. AVAX/USD daily price chart featuring bear pennant breakdown setup. Source: TradingView. AVAX price: key support levels. Conversely, AVAX s breakdown setup toward $11.50 could fell short due to certain keyThis article dives deep into the technical indicators, potential support levels, and overall market dynamics that could dictate whether Avalanche weathers the storm or succumbs to a substantial price drop.Let's explore the critical factors influencing AVAX's price and what investors should be watching for in the days ahead.

Avalanche's Bearish Technical Setup: A Deep Dive

The primary concern surrounding AVAX lies in its current technical formation.The bear pennant, a bearish continuation pattern, suggests that the prior downtrend will resume once the price breaks below the lower boundary of the pennant.The bearish formation appears to be very close to being validated.

Bear Pennant Formation and Price Targets

Bear pennants are particularly concerning because they often lead to significant price drops.In AVAX's case, the bearish target, based on the pennant formation, points to a potential decline of around 65%.This would bring the AVAX price down to approximately $11.50 by June 2025, a substantial drop from its current levels.

This projection is based on the historical performance of similar patterns and the anticipated continuation of the prevailing downtrend. AVAX forms a symmetrical triangle, signaling a possible breakout after months of consolidation. Key resistance levels sit at $22 and $24, with strong buying support around $18 and $16. AVAX could target $71 if the breakout confirms above $25 with rising volume. Trading volume and chart structure indicate investor accumulation near current levels.It's crucial for investors to understand that technical analysis is not foolproof, and market conditions can change rapidly, impacting the accuracy of these predictions. This paints the bearish target for the AVAX/USD pair at $11.50 by June 2025, down about 65% from today s price, as shown below. AVAX/USD daily price chart featuring bear pennant breakdown setup. Source: TradingView AVAX price: key support levels. Conversely, AVAX s breakdown setup toward $11.50 could fell short due to certain keyA bullish reversal of Bitcoin could invalidate the bearish setup.For that reason investors should monitor BTCUSD.

Descending Triangle and Potential Support Levels

Adding to the bearish outlook, Avalanche is also exhibiting characteristics of a descending triangle pattern.Should the price break down from this pattern, an initial 20% drop to the long-term ascending support trend line around $28 becomes probable. Avalanche AVAX Price Technical Analysis Shows Critical Support Test. AVAX is currently testing a familiar trendline that acted as solid support during May s recovery period. The price hovers near the $20.50 level, which intersects with this key technical support line. This creates a potential bounce zone or break point for continued downwardWhile a bounce at this level is possible, the overall bearish momentum suggests further downside risk.

The confluence of these two bearish patterns – the bear pennant and the descending triangle – amplifies the risk of a significant price decline for AVAX. Avalanche (AVAX) prices gained 0.5% to reach over $31 this May 23 but remained trapped inside a trading range that appears like a 'bear pennant' structure.Therefore, close monitoring of these formations is essential for investors.

Key Support and Resistance Levels for AVAX

Understanding the critical support and resistance levels is vital for navigating the current market conditions for Avalanche. Avalanche nears key breakdown level that could sink AVAX price by another 65% Cointelegraph admin on Leave a Comment Avalanche (AVAX) gained 0.5% to reach over $31 on May 23 but AVAX price remains trapped inside a trading range that appears like a bear pennant structure.These levels can act as potential buy or sell zones, influencing price movements and providing insights into market sentiment.

Immediate Support and Resistance

Currently, key resistance for AVAX stands at $20.47. BTCUSD Bitcoin Avalanche nears key breakdown level that could sink AVAX price by another 65% Strongly bearish fundamentals act as tailwind to Avalanche's technically bearish setup.Overcoming this level would signal a potential short-term bullish reversal.On the downside, immediate support rests at the psychologically important $20.00 level.A break below this support could trigger a further decline towards $19.50 or even lower.

The $20 level is a crucial battleground between bulls and bears.Its breach could accelerate the downward momentum, while holding firm could provide a platform for a potential rebound. Avalanche nears key breakdown level that could sink AVAX price by another 65%⁣ avax avalanche level nears priceThe technical support acted as a solid support during the May recovery period.Investors should pay close attention to this level, as it could dictate the short-term direction of AVAX.

Longer-Term Support and Resistance Zones

Looking beyond the immediate levels, strong buying support appears to be present around the $18 and $16 levels.These zones could offer significant resistance to further price declines and potentially attract buyers looking to accumulate AVAX at lower prices.Conversely, key resistance levels are situated at $22 and $24.Breaking through these levels with rising volume would suggest a stronger bullish reversal and could pave the way for a test of higher targets, potentially reaching $71 if the breakout confirms above $25.

• Resistance 1: $20.47
• Support 1: $20.00
• Support 2: $18.00
• Support 3: $16.00
• Resistance 2: $22.00
• Resistance 3: $24.00

Market Sentiment and Altcoin Performance

AVAX's performance is not isolated; it's influenced by broader market sentiment and the overall performance of altcoins. Strongly bearish fundamentals act as tailwind to Avalanche's technically bearish setup. Avalanche (AVAX) gained 0.5% to reach over $31 on May 23 but AVAX price remains trapped inside a trading range that appears like a bear pennant structure. Avalanche could get buried technicals Bear pennants are bearish continuation patterns, i.e, they resolve after the price breaks out of them to theCurrent market conditions suggest a degree of caution and uncertainty, with bearish fundamentals acting as a tailwind to Avalanche's already technically bearish setup. Strongly bearish fundamentals are an important factor to consider when analyzing the outlook for Avalanche.

The Impact of Bitcoin and Broader Market Trends

Bitcoin (BTC) often acts as a bellwether for the cryptocurrency market. Avalanche has underperformed in 2025 and will likely do so again in 2025. If the price breaks down from its descending triangle pattern, a 20% drop to the long-term ascending support trend line at $28 will be likely. The price could bounce once it gets there.A significant decline in Bitcoin's price can trigger a ripple effect, impacting the price of altcoins like AVAX.Conversely, a strong bullish move by Bitcoin can provide a boost to the entire market.Investors should closely monitor Bitcoin's price action, as it can provide valuable insights into the overall direction of the cryptocurrency market.

Altcoin Volatility and Investor Sentiment

Many altcoins are currently experiencing volatility, reflecting the uncertainty in the market.This volatility can be exacerbated by factors such as regulatory concerns, macroeconomic conditions, and project-specific news.Investors should be prepared for potential price swings and exercise caution when trading altcoins.

Potential Bullish Scenarios for AVAX

Despite the prevailing bearish outlook, there are potential bullish scenarios that could reverse the current trend for AVAX. This paints the bearish target for the AVAX/USD pair at $11.50 by June 2025, down about 65% from today's price, as shown below. AVAX/USD daily price chart featuring 'bear pennant' breakdown setup. Source: TradingView AVAX price: key support levels. Conversely, AVAX's breakdown setup toward $11.50 could fell short due to certain key support areas.These scenarios depend on various factors, including a shift in market sentiment, positive developments within the Avalanche ecosystem, and a strong recovery in Bitcoin's price.

Liquidity Sweep and Rebound Potential

Some analysts suggest that AVAX may complete a liquidity sweep near the local lows before rebounding towards the higher range. The setup suggests AVAX Avalanche price may complete a liquidity sweep near the local lows before rebounding toward the higher range. AVAX price eyes short-term bounce toward $22 after liquidityA liquidity sweep involves a temporary dip below key support levels to trigger stop-loss orders and shake out weak hands before a subsequent price increase.This scenario hinges on the presence of strong buying pressure at lower levels and a shift in market sentiment.

Symmetrical Triangle Breakout

Another potential bullish scenario involves the formation of a symmetrical triangle pattern. Currently, key resistance stands at $20.47, while immediate support rests at the psychologically important $20.00 level. If this support breaks, AVAX could retest lower zones, potentially around $19.50 or below. Market Sentiment and Altcoin Performance. AVAX isn t the only token experiencing volatility.After months of consolidation, AVAX has formed a symmetrical triangle, signaling a possible breakout.A confirmed breakout above the upper boundary of the triangle, accompanied by rising volume, could trigger a significant price rally.The target for such a breakout could be considerably higher, potentially reaching levels not seen in a while.If the breakout confirms above $25 with rising volume, AVAX could target $71.

Investor Accumulation and Trend Reversal

Trading volume and chart structure also indicate potential investor accumulation near current levels.This suggests that some investors are taking advantage of the lower prices to accumulate AVAX, anticipating a future price increase.If this accumulation continues and buying pressure increases, it could lead to a trend reversal and a sustained price rally.A surge in accumulation could be the turning point, if the accumulation continues.

AVAX Price Prediction and Future Outlook

Predicting the future price of any cryptocurrency is inherently challenging, given the volatile and unpredictable nature of the market.However, by analyzing the technical indicators, market sentiment, and potential bullish and bearish scenarios, we can gain a better understanding of the possible trajectory of AVAX's price.

Bearish Outlook and Downside Risks

Based on the current technical setup, the bearish outlook for AVAX remains prominent.The bear pennant formation, coupled with the descending triangle pattern, suggests a significant downside risk.If the price breaks below key support levels, a decline to $11.50 by June 2025 becomes a distinct possibility.Investors should be prepared for potential price declines and exercise caution when trading AVAX.

It's also important to consider the broader market conditions and potential negative catalysts that could exacerbate the downward pressure on AVAX.Regulatory concerns, macroeconomic factors, and project-specific issues could all contribute to further price declines.

Bullish Potential and Upside Opportunities

Despite the bearish outlook, there are potential bullish scenarios that could lead to a price recovery for AVAX.A liquidity sweep followed by a rebound, a breakout from a symmetrical triangle, or a surge in investor accumulation could all trigger a significant price rally.Investors should monitor these developments closely and be prepared to capitalize on potential upside opportunities.

Long-Term Potential and Growth Prospects

Beyond the short-term price fluctuations, it's important to consider the long-term potential and growth prospects of Avalanche.The Avalanche blockchain offers several advantages, including high transaction speeds, low fees, and a scalable architecture.These advantages have attracted a growing ecosystem of decentralized applications (dApps) and developers, which could drive future adoption and growth.

If Avalanche can continue to innovate and expand its ecosystem, it could position itself as a leading blockchain platform in the long run.However, it's important to acknowledge the competition from other blockchain platforms and the challenges of navigating the rapidly evolving cryptocurrency landscape.

Actionable Advice for AVAX Investors

Given the current market conditions and the potential for significant price swings, it's crucial for AVAX investors to adopt a prudent and risk-aware approach.

• Monitor key support and resistance levels: Pay close attention to the critical support and resistance levels outlined earlier in this article.These levels can provide valuable insights into potential buy or sell zones.
• Manage risk: Implement risk management strategies such as setting stop-loss orders to limit potential losses.Avoid investing more than you can afford to lose, and diversify your portfolio to reduce overall risk.
• Stay informed: Keep abreast of the latest news and developments within the Avalanche ecosystem and the broader cryptocurrency market.Understanding the fundamental factors driving price movements can help you make more informed investment decisions.
• Consider a long-term perspective: While short-term price fluctuations can be concerning, it's important to maintain a long-term perspective.If you believe in the long-term potential of Avalanche, consider accumulating AVAX at lower prices and holding it for the long haul.
• Seek professional advice: If you're unsure about how to navigate the current market conditions, consider seeking advice from a qualified financial advisor.

Frequently Asked Questions (FAQs) About AVAX

What is Avalanche (AVAX)?

Avalanche is a fast, low-cost, and eco-friendly blockchain platform designed for decentralized applications (dApps) and enterprise blockchain deployments.It aims to provide a scalable and customizable solution for a wide range of use cases.

What are the key features of Avalanche?

Key features of Avalanche include its high transaction throughput, low transaction fees, and customizable blockchain architecture.It uses a unique consensus mechanism that allows for faster transaction confirmation times compared to traditional blockchains.

What are the risks associated with investing in AVAX?

Investing in AVAX carries several risks, including price volatility, regulatory uncertainty, and competition from other blockchain platforms.It's important to carefully consider these risks before investing in AVAX.

Where can I buy AVAX?

AVAX is available for purchase on most major cryptocurrency exchanges, including Binance, Coinbase, and Kraken.

Conclusion: Navigating the Volatility of Avalanche

Avalanche (AVAX) is currently facing a critical juncture, with technical indicators suggesting a potential for a significant price decline.The bear pennant and descending triangle formations point to a possible 65% drop, potentially reaching $11.50 by June 2025.However, potential bullish scenarios exist, including a liquidity sweep and rebound, a symmetrical triangle breakout, and increasing investor accumulation.For investors, careful monitoring of key support and resistance levels, sound risk management, and staying informed about market developments are crucial.Despite short-term volatility, Avalanche's long-term potential remains promising, driven by its innovative technology and growing ecosystem.Ultimately, navigating the volatility of AVAX requires a balanced approach, combining technical analysis with fundamental understanding and a long-term perspective.Remember to do your own research and consider seeking professional financial advice before making any investment decisions.Is AVAX a buying opportunity or something to avoid?Only time will tell.