Avalanche AVAX price hits $13.687 while futures open interest rises to $558.45M in 24-hour trading.
Avalanche AVAX shows signs of weakness after rejecting its previous support and breaking a rising wedge pattern. The move suggests a short-term bearish setup as the price struggles near resistance zones. Current market conditions point to cautious positioning ahead of potential further declines. Additionally, AVAX is trading with mixed momentum indicators despite growing trading volumes on major exchanges.
AVAX Technical Setup and Market Structure
AVAX is trading at $13.566 with a 9.95% increase in recent sessions. Futures volume in the last 24 hours reached $865.76M while spot volume was $124.30M. The market capitalization stands at $5.83B with open interest of $553.44M. Circulating supply is 430.10M, total supply 461.77M, and max supply 715.74M.
The recent breakdown follows a rising wedge formation, a pattern often signaling continuation in a downtrend. Price compression occurred between upward-sloping trendlines, indicating weakening buyer momentum. Multiple rejections around $13.47 resistance confirm persistent selling pressure. Analysts note that AVAX needs a clear breakout above this zone to change the current trend.
Price Targets and Support Levels
Key resistance zones remain around $12.80 and $13.47, levels that could determine short-term direction. Failure to reclaim these zones increases the probability of a breakdown toward $12.0 or lower. Immediate support sits at $12.35, the 20-period SMA, which acts as a technical pivot. Traders are advised to monitor the daily ATR of $0.64 for volatility and potential swing trading opportunities.
Technical indicators show mixed signals. The MACD histogram at 0.1288 suggests momentum is slowly building, while the RSI at 44.11 remains neutral. Bollinger Bands show AVAX trading near the middle range of $11.59 to $13.11. Volume confirmation is crucial for any breakout attempt, with current 24-hour activity indicating moderate trading interest.
Related Readings: AVAX Targets $9 After Breakout – Channel Support Sparks Reversal Hopes
Short-Term Trading Considerations
AVAX trading patterns suggest a sell-the-rallies environment in the short term. A clean 12-hour close above $13.0 could invalidate bearish signals. Traders may consider conservative entries near $12.35 SMA, targeting $13.22 resistance. Stop-loss orders below $12.0 are advised to manage risk.
Market analysts are observing both futures and spot markets for trend validation. Open interest at $553.44M shows active positioning among traders. AVAX price action remains rangebound, reflecting indecision between buyers and sellers. Analysts recommend patience and confirmation before establishing new positions.
The AVAX ecosystem continues to support over 200 projects with more than 300,000 daily C-Chain transactions. Technical upgrades, including Elastic Subnets and Avalanche9000, aim to improve scalability. Institutional partnerships involve LuLu Financial Holdings, Crypto Finance, Mastercard, and SMBC. These developments may support medium-term adoption, but short-term price action remains cautious.
Source: https://www.livebitcoinnews.com/avax-price-action-signals-downside-risk-after-losing-support-and-breaking-wedge-pattern/
