Avalanche (AVAX) continues to trade within a clear descending channel that has shaped price action since the major top in early 2024, according to analysis on TradingView on Feb. 22.
The pattern shows a steady sequence of lower highs and lower lows, confirming a sustained bearish structure on the weekly timeframe.
The token recently saw a rejection close near the top of its downtrend, in the mid-$30s, and fell sharply towards the bottom half of the range. This indicates that the downtrend line is robust and has held off rallies for more than a year.
Source: TradingView
The lower boundary of the channel is now visible in the range of $6 to $8, which is the next major level of support. A breakout above this level may result in a bounce, but if it clearly breaks below, it may indicate a deeper correction.
Moving Averages and Indicators Reflect Ongoing Weakness
The large technical picture remains under pressure. The 20, 50, 100, and 200-week exponential moving averages remain above the market price, forming a kind of moving roadblock.
In the early stages of the cycle, the shorter exponential moving averages crossed below the longer ones, indicating negative momentum. They continue to point downwards.
The current weekly chart remains well below the 20-week EMA, which means that the short-term gains are being sold rather than being supported. As long as AVAX remains below the 100- and 200-week EMAs, any increase will be merely a correction.
Source: TradingView
The momentum indicators also portray a similar scenario. The Relative Strength Index is in the low 30s, nearing the oversold level but not indicating any strong bullish divergence. The MACD is still below zero, and the signal line and MACD line are both moving down.
The bearish momentum is not accelerating very quickly, but it is still present. In order for the MACD to turn positive, we would need a bullish crossover on the weekly MACD chart and a breakout above the channel resistance.
Also Read: Avalanche (AVAX) Forms Elliott Wave Pattern With $33–$147 Targets Ahead
Avalanche Pushes Business-First Strategy
Although the prices are under pressure, the management of Ava Labs is looking at the long term. On Feb. 17, Emin Gün Sirer, the CEO of Ava Labs, discussed a strategy for Avalanche that focuses on its use in the real world.
He stated that the blockchain industry is shifting from speculation to becoming the backbone of value transfer across the globe.
Sirer stated that Avalanche’s multi-chain structure, customizable environments, and readiness for businesses to move on to the blockchain make it an ideal platform.
He spoke about collaborations with large brands and banks. The next move for the network will be centered around embedded finance, improved single-chain speeds, fee systems, and token economics. The next development for AVAX will be informed by proposals from the community.
Also Read: Avalanche (AVAX) Eyes Recovery Toward $10 as Key $8.75 Support Holds