AVAX price is hovering near the $13–$14 region, but the broader structure is beginning to show early signs of strength. While short-term volatility remains elevated, market watchers are increasingly pointing to a shift in behavior beneath the surface, with buyers starting to defend key zones.
The combination of deeply oversold conditions, emerging reversal patterns, and improving on-chain fundamentals is shaping a technical backdrop that looks less like capitulation and more like a market preparing for a structural turn.
Crypto analyst Surya highlights that AVAX has pushed out of its descending channel after forming an inverse head-and-shoulders structure. This pattern is typically associated with trend transitions, particularly after prolonged bearish phases.
AVAX breaks out of its descending channel, signaling an early trend shift after months of bearish pressure. Source: Surya via X
The $10–$11 region has emerged as a critical base, with repeated defenses confirming buyer interest. As long as this zone holds, the structure remains constructive. A clean acceptance above the neckline near $14–$15 would be the first technical signal that Avalanche is transitioning from distribution into recovery.
From a market structure perspective, this marks the first “real shift off the lows” since the broader downtrend began.
Adding to the technical case, Oversold’s XTRM indicator shows AVAX at its most oversold level since the 2022–2023 bear market bottom. Historically, such readings tend to coincide with exhaustion phases rather than continuation.
AVAX reaches its most oversold reading since the 2022–2023 bear market bottom, signaling potential seller exhaustion near the $11 support zone. Source: Oversold via X
The chart highlights $11 as a high-confluence support zone. Even if price revisits that level, the risk-to-reward profile begins to skew favorably for longer-term positioning. Markets rarely remain this compressed without eventually mean-reverting, and AVAX is now sitting in a zone where selling pressure has largely played out.
This does not guarantee an immediate reversal, but it does suggest that downside pressure is losing momentum.
AlienOvich frames the recent move as a completed five-wave advance from the December low, followed by a developing three-wave corrective pullback. This aligns with classical Elliott Wave behavior during early trend shifts.
AVAX enters a corrective phase within a rising channel, with Elliott Wave structure suggesting a healthy pullback rather than trend failure. Source: AlienOvich via X
Price is currently respecting a rising channel, with projected support bands between $13.20 and $12.50. These zones act as potential reaction areas where the correction could terminate before a renewed push higher.
Rather than signaling weakness, this type of retracement often serves to reset momentum and build a stronger base for continuation. As long as AVAX remains above the channel’s lower boundary, the broader structure stays intact.
Beyond charts, Avalanche’s fundamental metrics are improving. AVAX One reports that the network became 43x more cost-efficient over the past year, while daily transactions tripled to 4.3 million.
This type of scaling efficiency typically appears before the price fully reflects underlying adoption. It suggests that the ecosystem is maturing even as market sentiment remains cautious. Historically, these divergences between fundamentals and price tend to resolve in favor of repricing.
From a technical standpoint, AVAX is transitioning towards recovery. Holding above $11 preserves the base. Acceptance above $14–$15 would confirm the inverse head-and-shoulders breakout and open the path towards $16.50 and $18.00.
Avalanche’s current price is $13.84, down 4.83% in the last 24 hours. Source: Brave New Coin
Those levels align with prior consolidation zones and the midpoint of the previous distribution range. A move into that band would not represent a full trend reversal, but it would confirm that the market has exited its capitulation phase.
For now, Avalanche sits at a meaningful inflection point. Oversold conditions, reversal patterns, and improving fundamentals are converging. The market is no longer in free fall, it is rebuilding its structure. Whether this becomes a sustained uptrend will depend on AVAX’s ability to hold its base and convert resistance into support.


