Avalanche Price Stabilizes After Monthly Crash. Can AVAX Recover?

The Avalanche (AVAX) cryptocurrency has had a rough past few weeks, with a monthly loss of over 30% leading up to last weekend. However, after a sharp crash, AVAX seems to have found stability around the $35 level, leaving investors wondering if a recovery is in the cards.

As of Monday, April 22, 2024, AVAX is trading at $39.11, up 3.77% as of writing today. Its market capitalization stands at $14.8 billion, making it the 12th largest cryptocurrency. Over the past 24 hours, AVAX has a trading volume of over $403 million, a 4.77% decrease as of writing.

AVAX Data Chart (CoinMarketCap)

AVAX Technical Analysis

The weekly chart shows that over the last five weeks, AVAX has closed bearish, recording a loss of 31.24%. However, it gained support in the past two weeks around the $30 level. Last week's candlestick formed a long-legged doji, indicating that buying pressure may be building, and this week's candle has opened and is trading bullish so far. 

AVAXUSD Weekly Price Chart (TradingView)

Is this AVAX recovery? Let's take a closer look  into the lower time frames.

AVAX Daily Technical Analysis  

On the daily chart, AVAX broke down from an ascending channel and below a demand zone on April 12th, dropping to find support around $30 on April 13th before facing rejection. Since then, the price has tried to regain bullish momentum, trading back toward the resistance of the broken ascending channel.

At the $30 support, a fair value gap was created on the breakdown day. This gap is likely acting as a magnet, pulling prices higher. Additionally, the RSI reading of 44 signals the potential for a buying spree, as there is ample room for increased buying pressure.

AVAXUSD Daily Chart (TradingView)

The next target is around $45, where AVAX faces resistance from the former ascending channel. If it can break above $45, it could rally toward $50 to test the right shoulder of a potential head-and-shoulders pattern. However, if rejected at the $45 channel resistance, AVAX may revisit the $30 support once again.

AVAX 4-Hour Technical Analysis

AVAX is currently trading bullishly and appears poised to fill the large fair value gap between approximately $40 and $46. The trading session opened today at $37.14, with a high so far of $39.21 and a low of $36.79, continuing to set new intraday highs.

AVAXUSD 4-Hour Chart (TradingView)

The recent price action provides some hope for an AVAX recovery after its dismal performance over the past month. However, whether the current bullish momentum can sustain a larger rally remains to be seen. Investors will closely watch AVAX's ability to break through resistance levels and resume an uptrend. However, don't forget the head and shoulder pattern that is forming, which is heavily a reversal pattern and signals continued bearish market movement. Only time will tell the clear direction of AVAX.