Avalanche (AVAX) Defies Downtrend with Short-Term Rally - Is This the Reversal Signal?

Avalanche just threw a curveball. While the broader crypto market continues its slow descent, AVAX is staging a short-term comeback. It's a classic case of a high-performance blockchain refusing to follow the herd.

The Technical Rebound

Forget the doom and gloom. AVAX's recent price action shows a distinct decoupling from the wider market's bearish momentum. This isn't just a dead cat bounce—it's a coordinated move by buyers stepping in at key support levels. The charts are telling a story of localized strength, a testament to the network's underlying utility cutting through the noise.

Why Avalanche? Why Now?

In a sea of red, capital finds the fastest escape route. Avalanche's subnets and near-instant finality aren't just marketing bullet points; they're operational advantages that attract real development and, by extension, capital. While other chains talk about scaling, Avalanche's architecture bypasses congestion—a feature that matters when traders are looking for efficiency, not just promises on a roadmap.

The Bigger Picture

Let's be real. One green candle doesn't make a bull market. But in crypto, sentiment shifts on a dime. This short-term recovery could be the spark that reignites interest, proving that even in a downtrend, quality protocols find their footing first. It's a reminder that while the market loves a good narrative, it ultimately pays for performance.

So, is this the bottom? Only time—and the next batch of overly-optimistic VC funding announcements—will tell.

Avalanche Attempts Short-Term Price Bounce

However, in the recent correction, popular crypto analyst GainMuse observed that AVAX is attempting to make a short-term bounce after reversing from the bottom boundary of its larger falling range.

According to his observation, the token’s price is attempting to bounce back after receiving support and could MOVE to higher intraday resistances after breaking above the adjacent downtrending line.

Avalanche Downtrend Persists Despite Recovery

Furthermore, not all indicators are showing an upward signal. Another market analyst, DrBullZeus, noted that AVAX is still working inside a clear downtrend. So far, all attempts to move up inside this chart pattern have been met with selling.

In addition to the warning, DrBullZeus picked up the price gap that was left uncovered during the strong selling pressure outburst of October 10. This region, commonly tested by price, lies below the existing price level and will have to be fulfilled before AVAX develops a more strong long-term foundation. Market analysts recommend keeping a very keen eye on possible price reactions within the value bracket of $9.00 to $8.50.

AVAX Weekly Trend Under Pressure

The value of the RSI is 33.64, which remains below the average of 41.27, indicating that there is weak momentum and sustained selling pressure. The price of AVAX remains significantly below the value of the Moving Average Ribbon, which means the value of SMA 20 is 20.73, SMA 50 is 21.76, SMA 100 remains at 28.17, and SMA 200 is at 26.13 units.

The MACD indicates these weak sentiments, with the MACD line standing at -3.25, lower than the signal line at -2.17. The MACD histogram is also negative at -1.07, indicating that the bear momentum is also ongoing. The MACD again indicates that sellers are dominating the market.