- Avalanche price drops to the lowest since November 2023, reversing Tuesday’s rebound from a 3.5-month support.
- Oversold RSI joins multi-month support to challenge short-term AVAX sellers amid crypto market anxiety ahead of key U.S. catalysts.
- Corrective bounce remains elusive below $15.00; short-term falling wedge highlights $18.00 for Avalanche buyers.
- October 2023 high can act as a buffer between $14.00 and the record low marked in 2023.
- Short-term consolidation in the Avalanche price appears imminent, but a broad bearish trend remains in place.
Avalanche (AVAX) price drops to the lowest in two years as bears poke multi-month support around $14.00, close to $14.50 by press time, amid broad crypto market pessimism. With this, the AVAX faces a four-week downtrend and a consecutive second monthly, as well as second yearly, loss by press time.
That said, cautious mood ahead of Wednesday’s key U.S. data and the Federal Reserve’s (Fed) monetary policy meeting minutes, as well as the third quarter (Q3) earnings from the U.S. chipmaker Nvidia, join the hawkish Fed bias to weigh on the cryptocurrencies.
Read Details: Cryptocurrency Weekly Price Prediction: BTC, ETH, and XRP remained Red on Market Fears
Adding strength to the altcoin’s downside momentum is the early-week breakdown of an ascending support line from early April, now immediate resistance.
However, the multi-month support line joins the oversold conditions of the 14-day Relative Strength Index (RSI) and easing trading volume to test AVAX bears as they keep eyes on the all-time low (ATL) marked in 2023.
According to Santiment, Avalanche’s daily trading volume eases for the second consecutive day to $412.97 million, while the market capitalization (market cap) hits a two-year low of $6.18 billion by press time.
Notably, an eight-week falling wedge bullish chart formation will be in the spotlight if the AVAX price recovers from current levels.
Hence, the Avalanche bears look exhausted as they poke the key support, suggesting a corrective bounce in prices. However, the potential recovery remains elusive below $18.00.
Avalanche Price: Daily Chart Tests Bears
On Monday, Avalanche offered a bearish breakdown of an ascending support line from April, now resistance near $15.00. The altcoin, however, bounced off a 3.5-month-old falling support line surrounding $14.00, before retreating early Wednesday.
Notably, overheated RSI conditions, currently around the oversold limit of 30.00, join the multi-month support of $14.00 to challenge the AVAX bears, suggesting a corrective bounce to the $15.00 support-turned-resistance.
The quote’s further upside, however, looks limited as a five-week resistance line near $16.60, and a falling trendline resistance from September, close to $$20.30, could challenge the Avalanche buyers afterward.
In a case where the AVAX price remains firmer past $20.30, the 200-day and 100-day Simple Moving Averages (SMAs), respectively near $22.70 and $23.90, could act as the final line of defense for the bears.
Alternatively, a downside break of $14.00 multi-month support could drag prices to October 2023 peak surrounding $11.82 before highlighting the $10.00 psychological magnet.
However, the Avalanche price action beneath $10.00 will be interesting to watch as it will threaten the altcoin’s all-time low of $8.64, marked in September 2023.
Avalanche Price: Four-Hour Highlights Falling Wedge
On the four-hour chart, Avalanche price portrays an eight-week-old “Falling Wedge,” a bullish chart formation, currently between $14.00 and $18.00.
It’s worth noting that the RSI conditions are nearly oversold and suggest a corrective bounce in price toward the 100-bar SMA hurdle surrounding $16.50.
However, the AVAX’s upside past $16.50 will be crucial to watch as the 200-bar SMA adds strength to the $18.00 resistance, comprising the upper boundary of the aforementioned wedge formation.
Should the quote manage to offer a clear break of the $18.00 hurdle, it becomes eligible, at least theoretically, to aim for the $40.00 target, with the daily chart’s levels likely offering intermediate halts.
Meanwhile, a downside break $14.00 could shift the market’s focus back to the deeper levels discussed on the daily chart.
Conclusion
Avalanche (AVAX) price remains on the bear’s radar despite the latest hesitation to break the key $14.00 support amid oversold RSI. The altcoin’s fresh downside, however, looks a bit distant, following a period of price consolidation, if the current market dynamics prevails. This highlights the immediate resistances, especially the $18.00, for the market players to watch.
Also read: Top 5 Fastest Growing Blockchains in 2025
