Avalanche Price Prediction: AVAX Attempts a Turnaround as Buyers Test Early Recovery Signals

Avalanche Price Prediction: AVAX Attempts a Turnaround as Buyers Test Early Recovery Signals

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Avalanche (AVAX) Price Prediction 2022
  • AVAX tests early bullish signals as it holds key EMAs while approaching major resistance.
  • Futures interest stabilizes, showing traders remain engaged despite reduced leverage.
  • Mild spot inflows hint at early accumulation, though stronger buying is needed for momentum.

Avalanche begins the week with a cautious rebound as traders assess whether the recent uptick represents a meaningful shift or another short-lived recovery. AVAX holds slightly above $14, and the market watches for signs of sustained strength after months of persistent selling. The asset formed a base near $12.52 in recent sessions, and buyers attempt to build on that foundation. 

Key Technical Levels Shape the Short-Term Outlook

AVAX reclaimed the 20-EMA, 50-EMA, and 100-EMA in recent days. This signals early bullish intent, although the broader trend still leans cautious. 

The 200-EMA near $15.19 remains the first major ceiling. Besides, the price currently trades near the 23.6% Fibonacci retracement level at $14.54, creating an immediate barrier for buyers.

A break above $14.54 could clear the route toward stronger resistance near $15.79, where the 38.2% Fibonacci level aligns with a declining EMA cluster. This zone forms a key decision area because a move above it would confirm improving momentum. 

AVAX Price Dynamics (Source: Trading view)

If strength continues, traders will then track deeper retracement levels at $16.81, $17.82, and $19.26. Each of these levels must flip into support to shift the medium-term structure upward.

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However, if AVAX loses steam, support rests at $14.12 and $13.94. A drop below $13.94 may open the path back to the cycle low at $12.52.

Futures Participation Holds Steady Into December

Source: Coinglass

Open interest offers useful context. Futures interest climbed from early-year lows near $300 million to peaks above $1.7 billion. This shows that traders remained engaged even as price volatility increased. 

Moreover, the latest reading near $548.56 million indicates reduced leverage after October’s unwinding. Participation remains higher than mid-year levels, suggesting traders prefer cautious positioning instead of exiting completely.

Source: Coinglass

AVAX’s spot flows show persistent outflows for most of the year. These outflows intensified from late September through mid-November, matching the steady price slide. 

However, netflows turned mildly positive near December 10 at $1.13 million. This shift signals early accumulation, although inflows need to strengthen consistently to change momentum.

Technical Outlook for Avalanche (AVAX) Price

Key levels remain clearly defined as Avalanche approaches a pivotal stretch in its short-term recovery. 

Upside levels include $14.54, $15.19, and $15.79 as immediate hurdles. A breakout above this cluster could extend toward $16.81 and $17.82 in the following sessions.

Downside levels include support at $14.12, followed by $13.94 and the cycle low at $12.52. The 200-day EMA near $15.19 stands out as the medium-term resistance ceiling that AVAX must flip to shift momentum toward a bullish structure.

The technical picture shows AVAX attempting to lift from a broad corrective base while trading inside a tightening structure created by clustered EMAs and shallow Fibonacci retracements. This compression suggests that a decisive breakout could trigger volatility expansion in either direction.

Will Avalanche Recover Further?

AVAX’s near-term direction depends on whether buyers can hold the $14.12–$13.94 support band long enough to challenge the $15.19–$15.79 resistance zone. A confirmed break and retest of that area could open the path toward $16.81 and potentially $17.82 if inflows strengthen.

Historical behavior around deep retracement levels and rising open interest signals rising trader engagement heading into year-end. If bullish momentum grows, AVAX could revisit the $19.26 region, where a deeper structural reversal may begin.

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Failure to defend $13.94, however, risks sending AVAX back toward the $12.52 accumulation base. A breakdown there would reset the current recovery and reinforce the broader downtrend.

For now, AVAX trades in a pivotal zone. Strengthening inflows, a stable futures market, and improving short-term momentum continue to support cautious optimism. However, market conviction and technical confirmation remain essential for the next significant move.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.


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