Avalanche’s AVAX token is attempting to stabilize near the $19.97 support level, hinting at a potential double bottom formation. However, the recovery remains fragile as global economic strain and intensifying trade disputes continue to weigh on crypto sentiment.

The token has shed 8.5% over the last 24 hours, dragged lower alongside broader risk assets amid mounting investor unease.

Market Context and Price Action

AVAX opened the session under pressure, declining from $21.84 to $20.11 in a sharp intraday drop. Selling accelerated particularly between $21.49 and $21.01, accompanied by a spike in volume (2.56M), reflecting capitulation-like behavior among short-term holders.

Bulls attempted to defend the $20.00 level, where notable buying interest (1.73M volume) emerged. A quick rebound to $20.38 raised hopes for a short-term reversal, but those gains were swiftly erased as AVAX dipped to a new low of $19.97.

This level has now been tested twice, forming a potential double bottom with improved buying volume. The token recovered slightly to close near $20.13, although upside remains limited by resistance around $20.35.

Outlook

While the double bottom pattern suggests AVAX may be forming a local floor, the broader trend remains bearish. Consolidation within the $19.97–$20.35 band could signal accumulation, but without a decisive breakout and supportive macro conditions, downside risks persist.