AVAX Recovers from Support Zone Following Sharp 6% Drop

Avalanche (AVAX) Reclaims Ground After Hitting Short-Term Lows

AVAX, the native token of the Avalanche network, is showing signs of technical stabilization after a sharp drop, with buyers stepping in at a key inflection point.

After declining 6.46% intraday, AVAX found strong support in the $20.76–$20.85 range, an area that has now emerged as a critical demand zone. The recovery came amid broad market weakness, with AVAX falling 5.6% in the past 24 hours, compared to the CoinDesk 20 Index’s 3.2% decline.

Technical Setup:

Support Confirmation: The $20.76–$21.00 level attracted significant buying interest, halting the decline and suggesting a base may be forming.
Descending Channel Broken: AVAX had been trading within a downward-sloping range, but resistance at $21.65 was breached after the token pushed above $21.20, a key technical trigger.
Momentum Shift: A swift V-shaped reversal from the psychological $21 mark highlighted strong intraday bullish momentum.
Volume Spike: Trading volume surged beyond 23,000 units per minute, signaling potential institutional accumulation or algorithmic buying.
Short-Term Outlook: As long as AVAX holds above the $20.76 zone, the near-term outlook remains cautiously constructive. A close above $21.65 could open the door for a retest of higher resistance levels.

While broader market sentiment remains cautious amid macro uncertainty, Avalanche’s strong rebound off oversold levels indicates buyers are beginning to reassert control, at least in the short term.