Avalanche (AVAX) is facing a critical test of support around the $11.50 level, which has held for over two years. A decisive breakdown of this long-standing floor could open the doors for substantial losses.
According to technical analysts, if the $11.50 support gives way, the next major level sits around $6. That would represent a nearly 50% decline from the current price.
AVAX has struggled to rebound despite bouncing twice off the $11.50 support in 2022. The price remains stuck below descending resistance around $20.
With the weekly and daily RSI in downtrends below 50, momentum indicates further downside risk. Bulls need to show commitment soon to defend the multi-year support.
Avalanche Slides Below Crucial Resistance After All-Time High
Since hitting its record peak of $147 in November 2021, AVAX has plunged below declining resistance currently around $20. This descending trendline has rejected rallies as recently as March 2022. During the decline, the price bounced twice at the horizontal support level of $11.50 in January and June 2023.
Despite bullish catalysts like Uniswap V3 on Avalanche, AVAX is struggling below resistance. On pullbacks, AVAX found buying interest twice near $11.50 support in 2022. However, upside remains elusive.
AVAX is fighting to hold the multi-year horizontal floor at $11.50 amid bearish momentum. Weekly and daily RSI below 50 signals building downside pressure as buyers fail to gain traction. A decisive breakdown of the long-standing $11.50 level opens the door for a potential 50% crash from here according to analysts.
Forecasting Future Movement for Avalanche’s AVAX Token
The RSI below 50 shows waning momentum as bulls lose control. Both weekly and daily timeframes signal growing downside risk. Rejection at $14.50 resistance preceded the recent slide, while the breakdown from short-term descending resistance looks invalidated.
With AVAX back below the breakout level, technicals suggest the rally failed to sustain upside momentum. Oversold RSI conditions likely sparked bounces earlier this year, but buyers have struggled to make progress since.
The loss of the crucial long-term floor at $11.50 exposes AVAX to a potential 50% collapse toward the next major support zone around $6. Given bearish technical signals across timeframes, the path of least resistance appears lower for AVAX without a swift reclaim of key levels.
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