AVAX tests key support zone, is a rebound on the horizon?

After experiencing a downward trend for the past three months, the avalanche community now anticipates a potential bullish reversal for Avax, powered by ecosystem developments and increasing acceptance.

In a recent X -post, trader Marzell told His 37.6K followers that Avax tested an important support zone between $ 15 and $ 20. He said that if this support applies and Avax closes the week above $ 30, it could see a strong rebound, making it possible to reach $ 43.84. If it breaks by, it can rise even higher to $ 58.06 and possibly $ 80.03, Marzell added.

Meanwhile, famous trader Kaleo shared A graph that suggests that Avax was in an accumulation zone and formed a pattern that is comparable to the pattern that was seen in November last year before it jumped 125%. He hinted that a similar meeting could happen again and said, “Something like this.”

According to data from crypto.news, from the afternoon of March 7 (Asian time), Avax traded at around $ 20.64, with a market capitalization of more than $ 8.5 billion and a trade volume of 24 hours of $ 538 million. The token remained 85.8% below the highest point of $ 144.96, recorded on November 23, 2021.

Despite the considerable downward trend in the past three months, with the price that almost 61% fell compared to the level of $ 54.18 that was reached on December 9 last year, some developments could help support the recovery of the Altcoin.

Multiple positive catalysts in the game

Firstly, the Avalanche CEO Emin Gün Sirer hinted that he could go to the Crypto top of the White House later today, which caused speculation that Avax could be included in the strategic reserve plans of the nation.

With pro-Crypto-sentiment who gets a grip from policymakers at the top, betting investors also that Avax could benefit from potential initiatives supported by the government-in accordance with the story of Trump in the story of Trump, given that New York-Headquartered AVA Labs has developed it.

Second, the avalanche community is preparing Bring Balancer V3 To avalanche. Once integrated, this latest version of the decentralized automated market maker will introduce advanced liquidity tools and new trade strategies in the Avalanche Defi eco system. The proposal that is already set in voice ends on 11 March 2025.

Thirdly, Avalanche has grown its presence in the Real-World Activa-Token risation space. According to Defillama, it is currently the 7th largest blockchain through Dex Volume, which last week rose by more than 18% to almost $ 1,345 billion.

Recently an Indian city accepted Avalanche’s blockchain to Tokenize more than 700k land records, with its Real-World Utility, which was well received by the Avalanche community.

In the meantime, santiment data shows that Avax’s weighted social sentiment has become positive and has climbs since the beginning of the week, a sign that allows the confidence of the community.

Avax price analysis

At the time of the press, however, several technical indicators flashed bearish signals.

On the 1-day/USDT graphic, Avax has fallen back under the falling trendline that has formed it since January 18, as a result of which he does not release himself from the Bearish trend.

The MacD and signal line keep moving together and remains below the price level, a signal that Avax still runs through a period of consolidation.

Furthermore, the Arron Up indicator confirms 78.5% and the Aroon with 0% a strong sales pressure, which indicates a dominant downward trend.

That is why Avalanche (Avax) will probably continue its downward trend, unless the current sentiment is shifting. During writing it had fallen by 6.5% in the past day and the hands exchanged at $ 20.5 per coin.