AVAX Eyes Breakout from Tight $20–$22 Zone Amid Volatile Moves

AVAX consolidates between $20–$22 as traders eye a potential breakout with bullish momentum building despite persistent resistance.

Technical patterns show a tightening wedge and higher lows, hinting at a possible 244% surge if $27 and the descending trendline break.

Indicators flash mixed signals as Ichimoku turns bearish and Stochastic RSI hits overbought levels, adding caution to bullish hopes.

AVAX consolidates in a tight range between $20 and $22, with mounting anticipation of a potential breakout. The price currently trades at $21.54, down 1.76% over the latest session. Although AVAX faced intense selling pressure, the token holds steady near key support levels. Technical patterns indicate a tightening structure, suggesting that a significant price move could be on the horizon.

Source: Solberg Invest

Besides, market sentiment remains cautiously optimistic as AVAX defends the $20 support zone. This level has held consistently, signaling strong buyer interest. Significantly, AVAX has already recovered from lows near $10 earlier this year. However, it still faces heavy resistance around the $22 mark. Price action continues to test this barrier, with multiple rejection wicks highlighting ongoing struggles by the bulls.

Descending Resistance and Price Structure

The long-term trendline from 2024 highs remains a dominant resistance. AVAX failed to break above it during recent rally attempts. Moreover, the red trendline clearly outlines bearish momentum stretching from the $65 peak down to current levels. Despite the persistent downtrend, the price now forms a series of higher lows.

Additionally, market structure shows a tightening wedge, formed by lower highs and higher lows. Hence, consolidation appears increasingly mature. A breakout above the trendline could ignite momentum toward the $71 target. This move represents a potential 244% surge from current levels, though resistance near $27 must be cleared first.

Indicators Reflect Mixed Momentum

The Ichimoku Cloud reveals alternating sentiment shifts across timeframes. Recent red cloud formations suggest bearish dominance. However, green clouds during April's rally highlight bullish potential. Currently, the price trades below the cloud, which confirms consolidation with bearish undertones.

Source: TradingView

The Stochastic RSI shows elevated values near 95, signaling possible overbought conditions. Besides, volume trends reveal heightened activity during failed breakouts, adding to current volatility. Consequently, traders should monitor these levels closely for signs of a confirmed breakout.

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