Avalanche (AVAX) Surges 53% Since March 11, Faces $22 Resistance

Avalanche (AVAX) has experienced a significant rally in recent weeks, surging over 53% since March 11. This rebound follows a brutal correction where avax lost over 72% of its value since mid-December 2024, causing widespread market fear and capitulation. The recent price action has shown signs of strength, but uncertainty persists among investors.

Despite the rally, many analysts believe the market may be entering a consolidation phase. AVAX is currently struggling to hold above the $22 mark, a key resistance level that could determine the continuation or stalling of the uptrend. Several technical signals are indicating caution as momentum begins to slow.

Ask Aime: What factors are driving the recent rally in Avalanche (AVAX), and how does it compare to past market behavior?

Top analyst Ali Martinez shared insights on X, noting that the TD Sequential indicator is now presenting a fresh sell signal. This suggests that AVAX may be due for a short-term pullback or a period of sideways movement. With the broader market still under pressure, traders are closely monitoring whether Avalanche can maintain its gains or lose momentum.

Avalanche has shown signs of life after enduring months of intense selling pressure. Like many altcoins, AVAX has been heavily impacted by macroeconomic volatility, losing over 70% of its value since mid-December 2024. The recent 53% surge since March 11 has revived hopes that AVAX could be ready to break out, but headwinds still remain.

The broader market environment continues to be shaped by uncertainty, with trade war fears and unstable macroeconomic signals keeping pressure on risk assets, including cryptocurrencies. Many investors remain cautious and are still offloading positions near current levels, concerned about the long-term direction of the market. While momentum is returning to some sectors, the path for Avalanche is far from clear.

Ali Martinez recently highlighted a technical development using the TD Sequential indicator. After accurately calling the recent bottom and a 50% rally in AVAX, the indicator is now flashing a sell signal. This suggests that Avalanche could be due for a short-term retrace or period of consolidation before any further move higher.

The $22 level remains a crucial resistance zone for AVAX. A temporary cooldown here may be healthy, giving bulls time to regroup before attempting a breakout. If AVAX can hold key support and reset after the current rally, it could build a stronger foundation for a decisive push above $22 in the weeks ahead. For now, all eyes are on price action as Avalanche balances between correction and continuation in a market still clouded by uncertainty.

Avalanche (AVAX) is currently trading at $21.80 after briefly reaching $23.40 just two days ago. The recent pullback reflects cooling momentum as bulls struggle to maintain pressure near short-term resistance. Still, the trend remains intact for now. To sustain the recovery rally, bulls must defend current levels and push toward reclaiming the $30 mark, which aligns with the 200-day moving average (MA) and 200-day exponential moving average (EMA). A successful breakout above this zone would be a strong bullish signal and could mark the beginning of a larger uptrend.

However, failure to hold above $20 in the coming days would be a warning sign. A breakdown below this level could trigger increased selling pressure and send AVAX back toward the $17 zone, a key support area from previous consolidations. As Avalanche continues to trade within a volatile range, the next few sessions will be crucial in determining short-term direction.

With the market still under macroeconomic pressure, bulls must act quickly to maintain momentum. A decisive move above $30 remains the target, but holding the $20 level is just as important to avoid a deeper retrace and renewed bearish sentiment.