Avalanche (AVAX) Price Faces Bearish Pullback Amid Bullish Sentiment

Coin WorldSaturday, May 17, 2025 5:31 am ET
2min read

The Avalanche (AVAX) price has been under significant upward pressure recently, leading to a narrow range of consolidation within the market. This has kept the levels under bearish influence, with the token's price dropping from its local highs at $26.88. Despite this, the overall sentiment remains bullish, driven by the network's high-speed subnets, which have been a game changer.

Technical indicators suggest a short-term pullback, but the larger price action remains bullish, indicating a possibility of a continued upswing. The volatility of the token has increased since the price jumped above horizontal consolidation during the last quarter of 2024. Market participants appear extremely bullish over the token, with the

price expected to rise to $0.26 in the next 10 days if the momentum continues to build.

Despite the bearish pullback, the Gaussian

remains bullish, keeping the bullish possibility alive. The price is testing one of the crucial supports at $22.75, which has been acting as a strong resistance to clear since March. However, the MACD shows a drop in the buying pressure with a possibility of a bearish crossover. The levels remain within the bullish range, which keeps the hopes of a bullish reversal alive.

Hence, the Avalanche price is believed to test the average bands of the rising parallel channel of around $21.45 that could offer a strong base to trigger a rebound. Meanwhile, a rise above $28 could only elevate the levels above the bearish influence and a rise above $30 could reinstate a bull run to $50.

The AVAX price rally has been a topic of significant interest, with analysts and investors alike speculating on whether the cryptocurrency will reach $30 or drop to $20 by May 2025. The AVAX price has shown a breakout from a cup and handle pattern, with a short-term target of $32 and a mid-term target of $71. This bullish momentum is supported by rising key metrics, indicating a potential for further gains. However, the market remains volatile, and the price could also face downward pressure, leading to a potential drop to $20.

The price of AVAX is influenced by various factors, including market sentiment, technological advancements, and regulatory developments. The ongoing development of the Polkadot 2.0 upgrade, which aims to enhance the network's scalability and flexibility, could positively impact the price of AVAX. The upgrade includes features such as Agile Coretime, Asynchronous Backing, and Elastic Scaling, which are designed to improve the network's performance and attract more developers.

The community's reaction to these developments is mixed, with some investors expressing optimism about the potential for AVAX to reach new highs, while others remain cautious due to the volatile nature of the cryptocurrency market. The social media activity around AVAX has been increasing, with more people discussing the cryptocurrency and its potential. This increased attention could contribute to further price movements, either positively or negatively.

In summary, the future of AVAX's price rally is uncertain, with both bullish and bearish scenarios possible. Investors should closely monitor market developments and technological advancements to make informed decisions about their investments in AVAX.