Avalanche (AVAX) investors are watching the asset’s price action closely. Recent developments in AVAX’s price trajectory suggest that the downtrend it has been experiencing may be slowing, potentially signaling a turning point for the token.

A Slowing Downtrend: Is the Worst Over for Avalanche?

Over the past month, AVAX has been showing signs that its downward trend is losing momentum. While it’s still uncertain whether the broader cryptocurrency market will see a full recovery in the coming months, there are indications that the worst may be behind for Avalanche. Investors are being advised to manage expectations carefully, especially as market conditions remain fluid.

A short-term catalyst for the asset’s price movement came in the form of a tariff pause declaration from President Donald Trump, which temporarily eased selling pressure on cryptocurrencies. Following this news, Bitcoin (BTC) experienced a notable 7% rally, and Avalanche saw a bounce of 10.3%, bringing some relief to investors.

The Importance of Key Price Levels for AVAX

A closer look at the technical charts reveals that the downward pressure on Avalanche has been easing, particularly in comparison to the heavy sell-offs experienced earlier in the year during January and February. According to the latest analysis, AVAX’s price action is forming a range between $15 and $17, with the possibility of consolidation in this region.

Technical Breakdown of AVAX’s Recent Price Action

The 1-day price chart for Avalanche highlights that while the bearish trend is still in play, the momentum of that trend has been slowing in recent weeks. The low of $15.27 in March marked a significant point of support for the token. However, the recent market pullback saw AVAX briefly dip to $14.66 earlier this week, testing lower support levels.

To provide further context, a fixed range volume profile chart was applied from the beginning of the November rally. This chart reveals key levels where Avalanche’s price has experienced substantial volume and price action. The upper and lower bounds of this value area (highlighted in blue) lie at $39.30 and $15.40, respectively, with the Point of Control (marked in red) positioned at $18.70, which is currently acting as resistance for the asset.

The analysis points to the $15–$17 range as a critical demand zone for Avalanche. If the price falls below the $14.50 mark, it could signal the possibility of another downward leg. Conversely, if AVAX bulls manage to defend this range, the potential for a recovery could be in the cards.

The Case for a Potential Bottom

While the bearish momentum has slowed, it’s important to note that AVAX is still far from fully reversing its downtrend. However, the price action in the $15–$17 range indicates a consolidation phase following the intense selling pressure seen over the past few months. This period of range-bound price action could represent a crucial base from which Avalanche could mount a potential recovery.

The chart’s liquidations map offers another interesting perspective. According to Coinglass data, long liquidations are outpacing short liquidations, with the former being positioned closer to the current price levels. This suggests that short-term targets for AVAX could range between $16.74 and $18.18. These levels are significant as they represent high-leverage liquidation points that could trigger price fluctuations.

It’s worth noting that if AVAX manages to hold above these key support levels and break through resistance near the $18.24 mark, further upside could be possible. In this scenario, the $19 and $20 levels would likely act as “magnetic” zones, meaning that the price may be drawn toward these areas. However, if the price fails to break these resistance levels, there is still the risk of a bearish reversal.

What’s Next for AVAX Investors?

As of now, Avalanche’s price action suggests that the token could be in the midst of a consolidation phase following its sharp decline in early 2025. The $15–$17 range will likely be critical in determining the next steps for AVAX. If the price can stay within this range and build momentum, a recovery could be on the horizon. However, if the price breaks below $14.50, further downside may be inevitable.

Investors should remain cautious, especially given the uncertainty of the broader market. The key takeaway from the charts is that while AVAX is not entirely out of the woods, it may be in the process of forming a long-term bottom. Investors should monitor these key levels closely to assess whether the bulls can take control or if further downside is in store.

Conclusion: A Wait-and-See Approach for AVAX

In conclusion, while it’s still too early to definitively say that Avalanche has reached its long-term bottom, recent price action suggests that the token is in a critical phase. If the current support levels hold and consolidation continues, AVAX may be poised for a rebound in the coming months. However, the cryptocurrency market remains unpredictable, and investors should be prepared for volatility.