Will Avalanche [AVAX] Plunge Further? Bears Set Sights on $14.5 Support!

In March 2025, Avalanche [AVAX] experienced a significant price drop, falling to $15.2 after an anticipated decline to $14. This downward trend has continued, with analysts noting a bearish outlook due to insufficient demand and strong resistance levels in the market.

Avalanche’s price action has been characterized by a retracement of its November rally, which was fully reversed by late February. Since then, the asset has lost an additional 14%, indicating persistent selling pressure. The trading volume during this decline has been notably high, suggesting that traders are actively selling their positions.

Technical indicators reveal that both the 20 and 50-period moving averages are trending downward. The 20-period moving average, currently at $20.29, has served as a dynamic resistance level over the past two weeks. The resistance zone between $20 and $21.7 is particularly significant, as it aligns with a bearish order block, which could hinder any potential price rebounds.

Furthermore, the Fixed Range Volume Profile tool highlights a high-volume node in the $20.5 to $22.1 range, reinforcing the strength of this resistance area. The daily market structure remains bearish, with the last lower high recorded at $24.95. A daily close above this level would be necessary to shift the market sentiment to a bullish stance, but such a movement appears unlikely at this time. Analysts are targeting the 23.6% Fibonacci extension level at $14.46 as the next potential support point for AVAX.

In summary, Avalanche [AVAX] is currently facing a bearish market environment, with significant resistance levels and high selling pressure. The asset’s price is projected to test lower support levels, making it crucial for traders to remain cautious in their strategies.