Avalanche Revisits 2022 Bottom: Bounce Toward $100 or Crash?

Avalanche just retested its 2022 floor—and the market's holding its breath.

The Setup: A Familiar Ghost

That price level isn't just a number on a chart. It's a psychological battleground where the last major capitulation wave ended. Hitting it again signals either a final flush of weak hands or the start of a much deeper dive.

The Bull Case: Spring-Loaded

Technicals hint at a massive, coiled-spring scenario. Reclaiming this zone as support could trigger a violent squeeze upward, with the first major target sitting squarely at the $100 mark. It's the classic 'double bottom' playbook every trader watches for.

The Bear Trap: Or Is It?

But support is just a concept until it breaks. A sustained close below this line could open the floodgates, invalidating the bullish structure and sending algorithms into a selling frenzy. The next meaningful floor might be a long way down.

The Verdict: Momentum Decides

This isn't about fundamentals or ecosystem growth right now. It's pure price-action psychology. Watch the volume on the bounce—or lack thereof. The market will vote with its capital, as it always does, often with the subtlety of a sledgehammer. Remember, in crypto, 'historic support' is just a fancy term for 'the level everyone is watching before they panic sell.'

Historical $8–$10 Zone Triggered Massive Gains      

Crypto analyst crypto Patel highlighted that AVAX faces a crucial juncture. The fifth attempt at $30 resistance could trigger a breakout toward $100. Reclaiming $16–$17 is essential for bulls. Failure risks a steep drop.

Historical records show that the range of $8 to $10 was responsible for huge hikes for $AVAX in the past. A growth rate of 1461% was realized in 2021, and 650% was realized in 2023. A fall below $8 might see the token drop to $3-$2.

AVAX Price Compression Signals Potential Breakout

Analyst Altcoin Pioneer shared a chart pointing out the price at $13.26. The level acted as a key support during prior drawdowns, many holders monitor this region. A return to previous levels is often a precursor to a strong movement.

Avalanche has been compressing within a large descending channel since 2021. Lower highs confirm a slow process. A horizontal area between $13 and $13.50 is known for a strong bounce. The return to this area is a signal for the next potential reversal or continuation setup.

Momentum indicators start weakening as AVAX approaches the lower boundary of the channel. Candles start reducing in size and compacting horizontally. Altcoin Pioneer explains that this is a typical indicator for impending volatility. Historical analysis shows that the market might see aggressive support defense and thus form a short consolidation range before attempting to reach higher resistance levels.

Market structure presents two possible courses. AVAX may sustain above $13 and rise to the channel middle, based on previous reactions. On the other hand, a possible breakdown may lead to $11 or even lower levels.

A support zone is formed here where the descending trendline intersects. The zone represents a consolidation point and is thus a critical zone for Avalanche to decide whether to continue with its upward movement or start feeling pressure to decline. Price action has been repeating a cycle for the last three years.