Will Avalanche (AVAX) Go Up in 2026?

Avalanche (AVAX) has spent a prolonged period under pressure, reflecting the broader weakness that has affected much of the cryptocurrency market over the past two years. After declining more than 90% from its previous highs, the token is now approaching a potentially important stage where traders are assessing whether selling momentum is beginning to fade. While the broader trend remains cautious, recent price action suggests that the market may be approaching a key decision point.

Avalanche (AVAX) technical analysis

AVAXUSD - 1 Day Time Frame

AVAX has been trading within bearish market structures since March 2024, placing the asset in a long-term downtrend that has resulted in a decline of more than 90%. It is important to note that this is not an isolated case, as the broader crypto sector has also been affected by similar structural weakness. Still, the current AVAX setup is becoming increasingly interesting from the perspective of momentum and price delivery.

From the daily timeframe perspective, price remains within an external bearish structure, highlighted on the attached chart with blue horizontal lines. These levels define the external lower low and lower high, which continue to serve as the key reference points of the current downtrend.

However, the strength of bearish price delivery appears to be changing. The continuous move that closed below the external lower low measured approximately 31%, while the latest continuous bearish impulse measured roughly 18%. This difference may suggest that bearish momentum is beginning to weaken, even though the broader structure remains bearish for now.

During the latest move, price also established a key resistance zone, which may serve as the primary decision point in the coming days. If AVAX manages to close above this zone on the daily timeframe, above $6.65, the market could begin forming an internal bullish correction.

In that scenario, the next relevant upside target is located around $8.50. From the current price near $5.60, such a move would represent potential upside of roughly 50%. While this would not automatically reverse the broader bearish structure, it could confirm a stronger internal correction within it.

Avalanche (AVAX) price target

For now, the main question is whether AVAX can reclaim the resistance zone or remain below it. A daily close above $6.65 could create room for an internal bullish correction toward the $8.50 area, which represents the nearest significant upside objective.

Conversely, if price remains below the resistance zone, the broader bearish structure may continue to dominate, increasing the likelihood of further downside pressure in line with the existing trend.

The current setup therefore depends heavily on the market's reaction around the highlighted resistance zone. Until price confirms a sustained reclaim of this area, the broader bearish structure remains active. Nevertheless, the weaker nature of the latest bearish impulse may indicate that selling pressure is no longer as strong as it was during earlier stages of the downtrend, making this an important area to monitor in the sessions ahead.

Crypto assets are unregulated, decentralised and highly volatile assets which entail substantial risks and you may lose all invested capital. Refer to the Disclaimers for detailed information on potential risks.