AVAX has recently come under strong sell-side pressure. After reaching its September peak, the token initially declined by 20%, and the subsequent sell-off extended the total loss to more than 75%.

AVAX technical analysis

AVAXUSD - 1 Day Time Frame

The price later showed an impulsive rebound of approximately 165%, suggesting renewed buying interest. However, following this sharp recovery, market activity has slowed, resulting in the formation of a short-term bearish trend. The key question now is whether this trend could continue lower, testing previous support zones, or reverse to potentially approach this year’s high once again.

As observed in similar market structures, the primary focus could be on monitoring resistance zones on the daily timeframe (highlighted in orange on the attached chart). One possible scenario for AVAX involves a strong daily close above both resistance zones.

AVAX price target

It is relevant to consider the origins of the bearish price delivery from which these zones emerged (marked by horizontal lines on the chart). Should this scenario unfold, market participants could look toward a potential upward continuation, placing risk management below the internal low of the short-term bearish structure while targeting this year’s and last year’s highs.

Alternatively, if the price continues to respect these resistance areas on the daily timeframe—meaning no daily candle closes above their upper boundaries or above the start of the bearish supply—the bearish outlook could remain in effect for now.

In either case, it remains essential to monitor the key resistance zones and the origins of bearish delivery closely, as these areas will likely determine whether AVAX regains bullish momentum or extends its current corrective movement.