On Thursday, crypto markets experienced turbulence as U.S. President Donald Trump and Tesla CEO Elon Musk clashed fiercely on social media over the national debt. The heated exchange culminated with Musk endorsing Trump’s impeachment and alleging a connection between the politician and Jeffrey Epstein files, sending shockwaves through digital asset markets.
Avalanche’s token, AVAX, was notably impacted, dropping sharply to as low as $18.48 from a previous $20.14. However, it has since rebounded by approximately 6%, now trading around $19.65, reclaiming nearly 58% of its losses. Technical analysis indicates that AVAX is forming a promising ascending channel pattern, with resistance levels at $19.76, hinting at potential upward momentum.
Despite a 1% decline over the past 24 hours, recent trading activity shows strong buying pressure. Volume spikes have coincided with brief surges, pushing AVAX to a local high of $19.76. The market’s formation of higher lows over the past 14 hours signals a strengthening bullish trend. If the current trajectory continues, AVAX could soon approach the psychological $20.00 level.
**Technical Highlights:**
– AVAX experienced an 8.14% drop from $20.14 to $18.48 amid peak selling volume of 3.65 million units.
– Support has been firmly established at $18.48, with a steady climb back to $19.65, recouping 57.8% of its recent losses.
– An ascending channel pattern is emerging, with resistance at $19.76.
– High-volume support zones identified between $18.48 and $18.88.
– The formation of higher lows over the last 14 hours suggests bullish momentum gaining strength.
– In the last hour, AVAX continued its recovery, gaining 1.01% from $19.49 to $19.69, with volume spikes of 45,299 and 64,948 units supporting the move.
Current market sentiment is leaning bullish, with key support levels around $19.53–$19.55. If this positive trend persists, traders may soon see AVAX crossing the $20 mark, potentially signaling a bullish breakout amidst recent tumult.
