Avalanche’s AVAX Token Surges 8.2% in 24 Hours, Broad Market Gains 6.3%

Avalanche’s AVAX token experienced a significant surge, gaining 8.2% within a 24-hour period. This impressive performance saw the token climb from $16.29 to $18.50, establishing a strong support level at $18.03. However, the token encountered resistance in the $18.47-$18.50 zone, according to a technical analysis model.

The broader cryptocurrency market also saw gains, with the CoinDesk 20 index, which tracks the top 20 cryptocurrencies by market capitalization excluding stablecoins, memecoins, and exchange coins, rising by 6.3% during the same period. This indicates that AVAX's performance was part of a broader market trend rather than an isolated event.

The technical analysis of AVAX's price action revealed a clear uptrend with higher lows, confirming strong support at $18.03. Significant volume spikes at the $17.40 and $18.07 levels further indicated strong buyer interest. However, a notable resistance zone emerged around $18.47-$18.50, where profit-taking occurred after the initial surge. Despite this, AVAX maintained most of its gains and appeared poised for further upside if it could break through this resistance level with sustained volume.

In the last 60 minutes, AVAX exhibited notable volatility with a clear downtrend, falling from $18.24 to $18.19, representing a 0.28% decline. The asset experienced significant price swings, reaching a high of $18.64 before encountering strong selling pressure that drove prices down to $18.14. A brief recovery attempt formed with three consecutive green candles, but this rally failed at resistance, confirming the bearish sentiment that has dominated the latter part of the session.

Despite the short-term resistance, AVAX's performance highlights its potential as a strong performer within the broader cryptocurrency market. The token's ability to establish strong support levels and maintain gains despite profit-taking indicates a robust underlying demand. However, investors should remain cautious as the token faces resistance at higher levels, and further analysis will be needed to determine its long-term trajectory.