Rongchai Wang
Nov 03, 2025 03:10
Avalanche trades at $18.01 after a 3.7% daily drop, testing critical technical support as the recent recovery momentum from October 30th lows begins to fade amid broader crypto weakness.
Quick Take
• AVAX trading at $18.01 (down 3.7% in 24h)
• Recovery momentum stalling after brief stabilization period
• Price testing lower Bollinger Band support at $17.65
• Following Bitcoin’s bearish trajectory in risk-off environment
Market Events Driving Avalanche Price Movement
AVAX price action over the past week reflects the classic cryptocurrency volatility pattern, with initial declines followed by attempted recovery that has now stalled. The most significant driver remains the October 30th broader crypto market downturn that saw AVAX price drop from $19.68 to $18.13, directly correlated with Bitcoin’s decline during that session.
Following this initial selloff, Avalanche demonstrated resilience with a recovery push on October 31st that carried through November 1st, reaching $18.69 as the broader cryptocurrency market showed signs of stabilization. However, today’s 3.7% decline to $18.01 suggests this recovery may have been premature, with AVAX price now testing technical support levels that could determine the next directional move.
Trading on technical factors in absence of major fundamental catalysts, AVAX has been primarily responding to Bitcoin correlation and general risk sentiment rather than Avalanche-specific developments. The lack of significant network announcements or ecosystem updates means price discovery is being driven by technical levels and macro cryptocurrency trends.
AVAX Technical Analysis: Testing Critical Support Zone
Price Action Context
AVAX price currently sits well below all major moving averages, with the token trading 3.7% below the 7-day SMA at $18.71 and significantly under longer-term averages. The 20-day SMA at $19.65 now represents immediate resistance, while the broader downtrend from higher levels continues to pressure the token lower.
The Binance spot market data shows AVAX trading near the lower end of its 24-hour range between $18.00-$19.01, with volume of $29.8 million indicating moderate institutional interest during this consolidation phase. Notably, AVAX price is following Bitcoin’s bearish momentum rather than showing independent strength.
Key Technical Indicators
The RSI reading of 33.26 places Avalanche technical analysis in neutral territory with potential for oversold conditions if selling pressure intensifies. More concerning is the MACD remaining in negative territory at -1.8011, though the histogram shows a slight bullish divergence at 0.1556 that could signal momentum shifts.
Bollinger Bands analysis reveals AVAX positioned at 0.0892, indicating the token is trading very close to the lower band support at $17.65. This technical setup often precedes either a bounce back toward the middle band or a breakdown below established support levels.
Critical Price Levels for Avalanche Traders
Immediate Levels (24-48 hours)
• Resistance: $19.65 (20-day moving average and previous support turned resistance)
• Support: $17.65 (Lower Bollinger Band and psychological level)
Breakout/Breakdown Scenarios
A break below $17.65 support could trigger accelerated selling toward the stronger support zone at $17.51, with potential for further weakness toward $16.04 near the 52-week low. Conversely, reclaiming $19.65 resistance would target the immediate resistance level at $21.65 (upper Bollinger Band).
AVAX Correlation Analysis
Bitcoin’s continued weakness is directly impacting AVAX price movement, with Avalanche showing high correlation to the leading cryptocurrency’s bearish momentum. Traditional markets have shown minimal direct impact on AVAX during this period, though general risk-off sentiment in broader markets could contribute to crypto weakness.
Sector peer comparison shows AVAX underperforming relative to some Layer 1 competitors, suggesting Avalanche-specific technical factors rather than broad smart contract platform strength.
Trading Outlook: Avalanche Near-Term Prospects
Bullish Case
Recovery above $19.65 resistance combined with Bitcoin stabilization could target the $21.65 level (upper Bollinger Band). Volume expansion above 40 million daily would support such a move, particularly if accompanied by broader cryptocurrency market recovery.
Bearish Case
Failure to hold $17.65 support risks a test of stronger support at $17.51, with potential for deeper correction toward $16.04 if selling pressure intensifies. Bitcoin continued weakness remains the primary downside catalyst.
Risk Management
Conservative traders should consider stop-losses below $17.50 for long positions, while position sizing should account for the elevated volatility indicated by the 14-day ATR of $1.58. Given current technical uncertainty, reduced position sizes are advisable until clearer directional signals emerge.
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