AVAX price was trading near a level many analysts consider its most crucial support area in five years.
The currently available market data indicated a price point of $20.13, and Bitcoin received the primary attention from the broader market.
However, AVAX showed signs of accumulation and could be preparing for a move. Traders were closely watching the $16–$18 support zone to see whether it holds in the coming days.
Key AVAX Price Support Zone Between $16–$18 Drew Market Attention
Avalanche (AVAX) traded just above the key support zone between $16 and $18. Over the past five years, this zone has served as a base for multiple reversals.
Historical data indicated that the market used the same price levels as support points during downturns in 2021, 2023, and early 2025.
The price moved upward during each movement period, attracting new customers while boosting market values in subsequent weeks.
Technical analysis suggested that this range coincided with a long-term horizontal demand area and an ascending trendline from 2020.
The intersection of these levels made this support zone a focal point for long-term holders.
Analysts stated, “if AVAX can stay above $17, the structure supports a long-term recovery.”
However, a drop below $17.53 could signal that the corrective structure is still in play.
The market showed declining volume in recent trading periods, as this pattern typically leads to critical groupings ahead of substantial price changes.
An upward bounce that increases trading volume from this area could aid a price movement towards upcoming short-term targets.
Suppose trading conditions become favorable, a potential breakout at $23.46 and $25.12 resistance levels could be possible.
Elliott Wave Pattern Points to Potential Upside Movement
The AVAX chart at press time showed a possible five-wave pattern from the April low near $13. Elliott Wave Theory often uses this wave structure to identify market trends.
According to recent analysis, AVAX may have completed the first impulsive wave. It may have either formed the third wave or a larger Wave C of a corrective move.
AVAX has already retraced into the 50%–61.8% Fibonacci zone between $18.15 and $17.55.
The recent market correction saw this support area maintain its position, suggesting multiple participants seek to purchase.
The price above $17.53 and increasing upward momentum indicate the third wave movement might already be underway.
A drop in price below this mark indicates Wave A may have reached its peak. That could lead to additional downward movement.
According to Fibonacci extension levels, traders will find potential resistance points at $25, $29.13, and $33.91 before $42.11.
The trading community will pay close attention to these levels because they match previously established support and resistance areas.
The price will likely attract traders who intend to take profits when AVAX demonstrates substantial ongoing volume at those established levels.
The strength of market volume during AVAX’s movement toward these price levels might prompt some traders to cash out their positions.
The price holds before some traders initiate their ascent towards prospective higher targets.
Market Sentiment Mixed as On-Chain Activity Remains Weak
While technical setups are improving, on-chain sentiment remained bearish based on network metrics at press time.
Of the four major indicators, only one—Net Network Growth—showed positive movement.
This indicator rose by 8.58%. That suggested new users continued interacting with the Avalanche network. Analysts saw this as a sign that the blockchain is still growing.
Other on-chain signals showed caution. The “In the Money” metric dropped by 1.35%, indicating that fewer holders were currently seeing profits.
The concentration of large holders has also decreased slightly, down by 0.04%. In addition, large transactions have fallen by 3.08%, which may suggest that whales are currently staying on the sidelines.
According to CoinGlass statistics, liquidations started to decline during the middle of March.
The long and short positions on exchange trading platforms stay equal while trading conditions indicate reduced leverage and conservative market behavior.
Rapid price movements of AVAX hold the potential to start a fresh series of liquidations while simultaneously increasing market volatility.
