In line with the general crypto market, Avalanche (AVAX) has experienced significant market correction over the past two weeks following an extended price rally. With the altcoin’s price now hovering around the $36 price zone, recent market predictions have highlighted a critical market condition needed to avoid a complete collapse of AVAX’s bullish structure.
AVAX Bulls Must Defend $35.30 For Total Price Recovery
On December 27, digital asset analysis platform More Crypto Online shared an insightful commentary on the AVAX market via the X platform. With the aid of the Elliott Wave Theory, the market experts forecasted a yellow scenario which is typically a bullish projection.
For context, the yellow scenario indicates an asset is in a corrective phase specifically within the B-wave of an A-B-C correction i.e a three-wave pattern that occurs during a price correction of which B is usually an upward movement that aligns with the ongoing market trend before transitioning to a final downward C-wave.
A yellow scenario suggests the B-wave is still forming and could push higher, provided an asset’s price holds above certain levels. In terms of the AVAX market, analysts at More Crypto Online state the asset price must remain above $31.69 to keep the yellow scenario valid.
However, to strengthen the case of this yellow scenario, market bulls must ensure AVAX’s price does not break below $35.3 as a dissent below this price region could potentiate a further decline to $31.69. The analyst warns that any price fall below this lower threshold would invalidate the yellow scenario resulting in a downward C-wave.
AVAX Price Overview
At the time of writing, AVAX trades at $36.74 following a decline of 2.12% in the past 24 hours. Meanwhile, the altcoin’s daily trading volume is down by 6.40% and valued at $448.45 million. On larger time charts, AVAX is in greater losses of 11.65% in 7 days and 14.81% in 30 days, demonstrating a consistent decline in recent weeks.
In making any headway, AVAX will first need to confront a major resistance at the $42 price zone, the subversion of which could open the pathway for a potential rally to $55.
With the crypto bull run predicted to fully take off in early 2025, this altcoin remains an investor’s favorite following its price performance in the 2021 bull cycle during which it gained by over 4,400 to establish its current all-time high of $144.96. With a market cap of $14.92, AVAX continues to rank as the 11th largest asset in the cryptocurrency market.
