Altcoins News

Story: Avalanche (AVAX) Rebounds Near $20—Is a 40% Rally Taking Shape

By Pankaj K

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Avalanche (AVAX) is attracting attention as one of the most technically poised altcoins for a strong upside reversal.

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The broader crypto market has been subdued, with Bitcoin struggling to break above the $95,000 resistance zone.

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Since March 2025, the AVAX price has remained trapped below the $22 resistance level. Despite occasional rebounds, bearish momentum has consistently halted any sustained breakout.

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This consolidation is occurring alongside narrowing Bollinger Bands, indicating a sharp drop in market volatility. Such patterns often precede major price movements.

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Market Structure and Hidden Bullish Divergence

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AVAX has been forming lower highs and lower lows, a structure generally associated with a bearish trend.

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This hidden divergence adds weight to the argument that AVAX is nearing the end of its current correction and could soon break above local resistance.

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Risks of a Double Top and Bearish Rejection

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Despite the bullish signals, the market is not without risks. AVAX recently faced its second rejection from the $22 neckline—raising concerns about the potential formation of a…

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That said, volume indicators suggest otherwise. The declining volume and volatility hint that the market may simply be in a state of accumulation rather than distribution.

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In the short term, AVAX must hold above $20 to maintain its bullish structure. A few daily closes above this level would support a case for further upside.

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In the mid-term, Avalanche’s prospects remain favorable, especially given its strong fundamentals and ongoing ecosystem development.

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Avalanche is showing signs of strength at a critical support zone, and the market could be gearing up for a significant price move.

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