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The price of Avalanche’s AVAX is currently consolidating beneath a significant resistance zone, raising concerns over a possible downturn to $22.
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With whale participation decreasing, a drop to $22 could ultimately create an environment for accumulation, essential for a future trend reversal.
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“The decline in whale transactions indicates the market could be preparing for further volatility,” a report from COINOTAG noted.
AVAX consolidates under resistance, with dwindling whale activity hinting at a potential price drop to $22, paving the way for possible bullish momentum.
AVAX Price Consolidation Under Key Resistance Zone
Recently, AVAX has been exhibiting a pronounced consolidation trend beneath a key trendline resistance that has been in place since early August. This situation signals a notable lack of bullish momentum, which could limit the cryptocurrency’s price recovery in the near term.
Historically, such periods of stagnation often precede significant price movements. The noticeable decrease in whale activity—transactions from major holders of AVAX—may hinder the token’s ability to overcome its current resistance. As the market stands, a retest of lower support levels appears increasingly plausible, with the $22 mark presenting itself as a crucial zone. This level has historically served as an area of considerable accumulation, potentially allowing for enough bullish energy to trigger a trend reversal.
Source: TradingView
Could $22 Provide a Path to Bullish Revival?
Should AVAX fail to accumulate sufficient buying strength to break through the persistent trendline resistance, a decline to the $22 support level could soon become a reality. This price point presents an attractive scenario for accumulation, potentially enticing larger investors to establish long positions.
For AVAX to shift its current trajectory, it must amass significant bullish momentum, with $22 serving as the most immediate launchpad for potential bullish revival. Although current market indicators suggest that a price drop to $22 is within reach, patience from investors is essential. This pivotal level may represent the optimum area for buyers to initiate long-term positions, ultimately steering prices higher.
Conclusion
The current landscape for AVAX suggests important trends are unfolding, with a consolidating price movement beneath key resistance potentially leading to a corrective drop to $22. This support level stands out as a crucial area for accumulation, which could enable a substantial bullish revival. As market participants keep a close eye on whale activities and price movements, the upcoming weeks may determine the future trajectory of AVAX.
