Avalanche,Polkadot Test Critical Support Levels After Recent Gains

Avalanche (AVAX) and Polkadot (DOT) are currently at a pivotal juncture, testing critical support levels that could determine their short-term trajectories. Over the past month, AVAX has seen a notable gain of 24.71%, while Polkadot has gained 8.17%. However, both cryptocurrencies have experienced declines over the past six months, with AVAX dropping by 27.25% and Polkadot by 4.80%.

AVAX's price action has been volatile, with strong short-term rallies countered by a bearish long-term trend. The cryptocurrency is currently trading between $16.03 and $24.43, with a support level at $11.14 and resistance at $27.94. A modest resistance point exists at $36.34, and a second support level is at $2.73. The negative momentum indicator suggests that bears have the upper hand, but the market is in a consolidation phase, making it crucial to watch for decisive moves around these key price barriers.

Polkadot, on the other hand, has shown intermittent rallies within an overall downbeat half-year trend. The cryptocurrency is currently trading between $3.41 and $4.54, with a nearby resistance level around $5.03 and support near $2.76. Secondary levels of resistance and support are at $6.16 and $1.64, respectively. The momentum and moving averages lean slightly bearish, suggesting that short-term trades might focus on buying near support with profit targets near the $5.03 resistance level.

Both AVAX and DOT are currently testing critical support levels, with market participants closely monitoring whether bulls can hold the line or if a breakdown is imminent. The broader crypto market has shown signs of recovery, but these two prominent altcoins face significant challenges as they navigate key support zones. A decisive daily close below these levels could signal a breakdown, leading to further declines. Conversely, a strong hold above these support levels could pave the way for a bullish reversal.

Analysts have noted that the current market structure for both AVAX and DOT is neutral but constructive. Despite recent pullbacks, bulls have defended key support levels, indicating strong demand in these areas. However, ongoing macro uncertainties and geopolitical tensions continue to influence risk sentiment, adding to the challenges faced by these altcoins.

The next few days will be crucial in determining the short-term direction of AVAX and DOT. If bulls can successfully defend the critical support levels, it could open the door to a broader rally. Conversely, a breakdown below these levels could signal another round of range-bound price action or even a deeper correction. Market participants are closely watching these developments, as the outcome could have significant implications for the broader crypto market.