Avalanche Revisits 2022 Bottom: Bounce Toward $100 or Crash?

• Avalanche is currently trading at $13.46 with a volume of $370.77 million, facing a critical 2022-like zone.
• Historical prices of $8 to $10 fueled a staggering rise of 1461% and then 650% in 2023.
• Price compression around $13 is a signal for a possible breakout, with traders targeting $30-$100.

Avalanche (AVAX) sits near the same zone that triggered major rallies in 2022. Currently, Avalanche is trading at $13.46 with a volume of $370.77 million and a market cap of $5.78 billion with a dominance of 0.19%.

Historical $8–$10 Zone Triggered Massive Gains      

Crypto analyst Crypto Patel highlighted that AVAX faces a crucial juncture. The fifth attempt at $30 resistance could trigger a breakout toward $100. Reclaiming $16–$17 is essential for bulls. Failure risks a steep drop.

Historical records show that the range of $8 to $10 was responsible for huge hikes for $AVAX in the past. A growth rate of 1461% was realized in 2021, and 650% was realized in 2023. A fall below $8 might see the token drop to $3-$2.

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AVAX Price Compression Signals Potential Breakout

Analyst Altcoin Pioneer shared a chart pointing out the price at $13.26. The level acted as a key support during prior drawdowns, many holders monitor this region. A return to previous levels is often a precursor to a strong movement.

Avalanche has been compressing within a large descending channel since 2021. Lower highs confirm a slow process. A horizontal area between $13 and $13.50 is known for a strong bounce. The return to this area is a signal for the next potential reversal or continuation setup.

Momentum indicators start weakening as AVAX approaches the lower boundary of the channel. Candles start reducing in size and compacting horizontally. Altcoin Pioneer explains that this is a typical indicator for impending volatility. Historical analysis shows that the market might see aggressive support defense and thus form a short consolidation range before attempting to reach higher resistance levels.

Market structure presents two possible courses. AVAX may sustain above $13 and rise to the channel middle, based on previous reactions. On the other hand, a possible breakdown may lead to $11 or even lower levels.

A support zone is formed here where the descending trendline intersects. The zone represents a consolidation point and is thus a critical zone for Avalanche to decide whether to continue with its upward movement or start feeling pressure to decline. Price action has been repeating a cycle for the last three years.

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