Is Avalanche (AVAX) already fading from relevance and becoming another project that could gradually disappear, or can it undergo a comeback? There is no definitive answer to this, as cryptocurrency market conditions can change rapidly. However, the chart provides enough information to evaluate the current context and adjust expectations accordingly.

AVAX technical analysis

AVAXUSD – 1 Day Time Frame

Avalanche has recently attempted to test its first resistance zone. This occurred after a break above the trend line at the end of last month, followed by a successful confirmation. The move carried the price directly into an area that aligns with the Fibonacci 0.618 level.

AVAX also swept liquidity below the previous swing low, although only partially. This suggests that a considerable amount of liquidity still remains beneath the last two lows, indicating that the market could return to sweep this area fully. If such a move occurs, price could approach the Fibonacci 0.786 level, where a local low may form and potentially initiate at least a short-term upward movement.

AVAX price target

There is also the possibility that the market takes the opposite route. If Avalanche gains sufficient bullish momentum, it could break through the resistance area in the coming days without revisiting liquidity zones below. Under such conditions, the price could advance toward sweeping liquidity above each successive swing high, creating a rapid upward continuation.

However, if sellers remain dominant, such a scenario could unfold much more slowly or fail to materialize, as market imbalance would continue to suppress upward movement.