AVAX crypto is holding firm near a key support zone, with growing signs of accumulation hinting at a potential reversal and renewed bullish momentum ahead.
AVAX crypto is drawing attention again as participants eye its critical support zone between $18 and $20, a region that has historically sparked powerful reversals. After weeks of steady selling, the market is now showing early signs of strength.
AVAX Crypto Reversal Potential Builds Near Weekly Support
Price action shows AVAX crypto stabilizing near a major weekly support zone, the same area that previously triggered multiple impulsive rallies. Structure suggests accumulation pressure is quietly returning as candles begin to compress above the base channel.
AVAX holds firm within its historic $18–$20 support zone, signaling potential accumulation ahead of a possible rebound. Source: VexeCrypto via X
As noted by VexeCrypto, this “super discount zone” around $18 to $20 has historically acted as the ignition point for every strong leg higher. A clean defense here, followed by a reclaim above $24, could confirm a short-term reversal setup and mark the beginning of another expansion phase.
Narrative Re-Emerges Around AVAX’s Market Comeback
The conversation surrounding Avalanche is beginning to heat up again. Social momentum is rising, and sentiment is turning constructive as the AVAX community anticipates its return among the top 10 market-cap assets.
AVAX sees renewed optimism as social momentum and institutional interest rise. Source: ExcelBaller via X
ExcelBaller captured this renewed optimism, pointing to how institutional liquidity may start rotating back into high-efficiency Layer-1 networks like Avalanche as broader market appetite recovers. The network’s scaling fundamentals, coupled with aggressive development activity, suggest the foundation for that comeback is already in motion.
AVAX Price Prediction: Monthly Structure Hints at Breakout Setup
Monthly technicals reveal a maturing symmetrical triangle, where AVAX crypto has compressed between declining trendline resistance and horizontal support. This setup, visible on Pure8’s chart, typically precedes major breakouts once the upper structure gives way.
Avalanche forms a tightening symmetrical triangle, signaling a potential high-timeframe breakout ahead. Source: Pure8 via X
A decisive move above $40 to $45 could open the path towards $70 to $90, matching the measured move target of the formation. Support remains well-defined around $18, keeping downside risk controlled as the broader consolidation nears resolution. With volatility contracting, the probability of a high-timeframe breakout grows with each passing month.
Momentum Indicators Signal Strength
Price resilience is being reinforced by on-chain and indicator-based metrics. Recent data from Honeybear’s technical breakdown shows RSI flattening near its lower band and MACD losing negative momentum, reflecting cooling sell-side pressure.
AVAX RSI and MACD show early recovery signs, hinting at cooling bearish momentum. Source: Honeybear via X
The same $19 to $20 area that acted as support in August 2024 has once again held firm, creating a possible cyclical bottom. Historically, this combination of oversold RSI and waning bearish MACD has marked the early stages of reversal across previous AVAX cycles.
On-Chain Burn Activity Adds Fuel to the Bullish Case
Tokenomics are also aligning with the technical picture. Analyst joeycannoli9 highlighted that October marked Avalanche’s highest monthly burn in over a year, with 59,000 AVAX (over $1.1M) permanently removed from circulation. This supply contraction mechanism strengthens long-term value dynamics as network usage continues to expand.
AVAX records its largest monthly burn in over a year, boosting token scarcity and long-term bullish momentum. Source: joeycannoli9 via X
Burn acceleration has consistently preceded price recoveries, underscoring how transactional growth directly feeds back into token scarcity. As ecosystem adoption pushes fees higher, the deflationary impact could strengthen any forthcoming technical breakout, providing tailwinds for sustainable upside momentum.
Final Thoughts: AVAX Technical Analysis
AVAX is beginning to show signs of strength after holding the $19 support level, which continues to act as a solid base for buyers. Price reactions in this zone have repeatedly marked local bottoms, signaling that demand is quietly stepping back in as selling pressure fades.
The immediate resistance lies at $20.80, a level that has capped several recent recovery attempts. A clean breakout above this threshold could open the door for a rally towards $23.50, where the main hurdle awaits. This region remains a key battleground; short-term bulls have struggled to maintain momentum beyond it, making the next retest a decisive moment for confirming trend continuation.
