Avalanche (AVAX) Rebounds Sharply, But Faces Headwinds After Brief Surge

Avalanche’s AVAX token saw a sharp but short-lived price increase on Tuesday, jumping 3.8% to hit $21.31 before retracing some gains later in the session. The move came amid heightened trading activity and broader crypto market volatility.

Market Overview:

• AVAX traded within a 6.2% daily range, climbing from $20.52 to a high of $21.31 before dipping.
• The rally pierced through overhead resistance near $20.90, triggering a wave of bullish momentum.
• Volume spiked to 1.33 million during the breakout, reinforcing the strength of the initial move.
• However, a rapid pullback followed, with a 5.8% decline occurring during the highest-volume candle (40,669 units), hinting at possible exhaustion.
• New support formed at $21.15, while the $21.00 zone has emerged as a short-term battleground between bulls and bears.
• Declining volume in subsequent hours points to market indecision, with potential for consolidation ahead.

While the intraday surge highlights renewed buyer interest, AVAX’s inability to sustain above its highs may signal caution among traders. Analysts are now eyeing the $20.50–$21.50 range as a key zone for potential accumulation or a retest of support.