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Avalanche (AVAX) just took a sharp turn as it drops below a key 4-hour trendline, signaling a potential shiftin momentum that has traders on high alert. What once looked like a steady climb has suddenly faltered, raising concerns about further downside pressurefor the crypto asset if buyers fail to reclaim control. Failure To Reclaim May Trigger New Lows For Avalanche
In his recent post, TradingGain noted that “Avalanche breakdown signals a shift in momentum from bullish to bearish,” marking a pivotal moment for the asset. The price has slipped below a key trendline on the 4-hour chart, which had previously provided strong supportduring the recent uptrend. This breach suggests that selling pressure is beginning to outweigh bullish momentum. Related Reading Avalanche (AVAX) Eyes 30% Rally Amid Cup-And-Handle Pattern Breakout 1 week ago
He further pointed out that AVAX is “currently retesting the broken trendline.” This stage is critical, as it often determines whether a breakdown will be confirmed or invalidated. If the bullsmanage to push the price back above this level, there could be a chance for a rebound. AVAX makes bearish breakdown | Source: TradingGain on X
However, a failure to reclaim the trendline might open the door for a deeper correctiontoward $21 and below.” This reinforces the need for traders to watch the price action closely in the coming sessions, especially around the retest zone, as it could shape the next major move for Avalanche. Momentum Fades As RSI Weakens
Further strengthening the case for a bearish shift, TradingGain also pointed out that the Relative Strength Index (RSI) is flashing signs of weakness. The RSI has been steadily declining, reinforcing the idea that momentum is tilting in favor of the bears. This adds another layer of confirmation to the recent trendline break, suggesting that the upward trajectory may be losing steam.
He emphasized the importance of closely monitoring price action between $22.8 to $23.0, a previous support region now acting as a potential resistance level. If AVAX fails to reclaim this zone and faces rejection, it could solidify the bearish narrative and open the door for further downside movement. For now, traders should remain cautious and watch how the market reacts around this crucial area. Related Reading Avalanche (AVAX) Overextended—Is A Market Shakeup Imminent? 3 months ago
In his concluding remarks, the analysturged traders to stay alert and avoid rushing into trades. He emphasized the importance of letting the market reveal its direction before making any decisive moves, especially with Avalanche sitting at a key level.
At the time of writing, Avalanche is changing hands at approximately $23.74, posting a 6.61% increase in price over the past 24 hours. The upward move is accompanied by a 5.72% rise in trading volume, suggesting a fresh wave of market participation. AVAX trading at $23 on the 1D chart | Source: AVAXUSDT on Tradingview.com Featured image from Getty Images, chart from Tradingview.com