Avalanche’s AVAX Token Drops 5.8% After $20 Rejection

Avalanche’s token, AVAX, experienced a significant price drop after being rejected at the $20 mark. The token's price fell to $18.61, marking a 5.8% decline in the last 24 hours. This drop was more pronounced than the 4.2% decline observed in the CoinDesk 20 index, which tracks the top 20 cryptocurrencies by market capitalization, excluding stablecoins, memecoins, and exchange coins.

The rejection at the $20 psychological barrier triggered accelerated selling, driving prices down to $18.61. This rejection coincided with peak trading volume, suggesting large-scale profit-taking and position liquidations. The technical analysis indicates a double top pattern on the short-term, which further supports the bearish sentiment.

Support for AVAX has formed in the $18.90-$19.00 zone, with multiple tests indicating that this range may act as a critical support level. However, the four-hour consolidation pattern suggests potential stabilization after the sharp decline. Diminishing volumes indicate waning trader interest at current levels, which could lead to further price fluctuations.

Increasing selling pressure with declining volumes suggests trader exhaustion, as the market struggles to find a clear direction. The double top pattern formed around the $19.05 level adds to the bearish outlook, as traders may be looking to sell at higher levels to avoid further losses.