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Avalanche (AVAX) Price Analysis: Why AVAX Plunged 5.8% After Hitting $20 Resistance Level | Flash News Detail | Blockchain.News
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6/29/2025 7:48:55 PM

Avalanche (AVAX) Price Analysis: Why AVAX Plunged 5.8% After Hitting $20 Resistance Level

Avalanche (AVAX) Price Analysis: Why AVAX Plunged 5.8% After Hitting $20 Resistance Level

According to @EricCryptoman, Avalanche (AVAX) experienced a sharp rejection at the $20 psychological resistance level, causing the price to fall 5.8% to a low of $18.61. The analysis indicates this downturn was driven by significant profit-taking and liquidations, as evidenced by a peak trading volume of 1.9 million at the point of rejection. Technical analysis from the source suggests a new support zone has formed in the $18.90-$19.00 range, which has been tested multiple times. However, diminishing trading volumes at current price levels could signal waning trader interest and potential for further consolidation.

Source

Analysis

The cryptocurrency market is presenting a complex and divergent picture for traders, as Avalanche (AVAX) faces a significant technical setback while Solana (SOL) demonstrates notable resilience. Avalanche’s native token, AVAX, experienced a sharp rejection at the critical $20 psychological barrier, a level closely watched by traders. After touching a high of $19.99, a wave of selling pressure quickly pushed the price down by 5.8% over the last 24 hours to a low of $18.61. This downturn occurred amidst a broader market dip, where a general index tracking the top digital assets, excluding stablecoins, saw a decline of 4.2%. The price action for AVAX highlights the current sensitivity of altcoins to key resistance levels and the willingness of market participants to take profits at the first sign of weakness. The event serves as a crucial case study for traders navigating the volatile altcoin landscape.



AVAX Technical Breakdown: Resistance and Trader Exhaustion


A deeper dive into the technicals for AVAX reveals a classic rejection scenario. According to analysis from Eric Cryptoman, the failure to breach the $20.00 mark was not just a psychological event but was backed by significant volume. Trading volume peaked at 1.9 million tokens precisely as the sell-off intensified, with prices briefly touching $18.74 around midnight. This surge in volume at a key resistance level is a strong indicator of large-scale profit-taking by short-term holders and potential forced liquidations of leveraged long positions. The market's inability to absorb this selling pressure confirmed the strength of the $20 resistance zone, turning it from a potential breakout point into a firm ceiling. This price action suggests that a substantial number of sellers were waiting for this specific level to exit their positions.



Following the sharp decline, AVAX entered a period of consolidation, attempting to establish a new support base. Technical analysis models indicate that a support zone has begun to form in the $18.90 to $19.00 range, a level that has been tested multiple times on shorter time frames. However, concerning signals are emerging from the charts. A small double top pattern formed around the $19.05 level on the four-hour chart, often a bearish precursor to further downside. Compounding this is the observation of diminishing trading volumes during the consolidation phase. While consolidation on low volume can sometimes precede a recovery, in this context, coupled with increasing selling pressure, it points more towards trader exhaustion. The lack of buying interest at these levels suggests that bulls are hesitant to step in, potentially waiting for a more significant price drop or a clearer sign of market reversal before re-engaging.



Solana (SOL) Bucks the Trend with Relative Strength


In stark contrast to the bearish sentiment surrounding AVAX, Solana (SOL) has painted a much more optimistic picture for its holders. While the broader market faltered, SOL demonstrated impressive relative strength. The SOL/USDT pair, a primary market for the token, is currently trading at approximately $152.79, marking a 1.24% gain over the past 24 hours. During this period, it navigated a range between a low of $149.50 and a high of $154.64, successfully defending the psychological $150 support level. This resilience is significant, as it shows strong buyer demand that is absorbing any market-wide selling pressure. The robust 24-hour volume of nearly 1,680 BTC on this pair alone underscores the active and sustained interest in Solana from market participants.



SOL Outperforms Both Bitcoin and Ethereum


Solana's strength is not just evident against the US dollar but also against the two largest cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH). The SOL/BTC trading pair has climbed 2.488% to a price of 0.00142920 BTC, indicating that SOL is appreciating in value faster than Bitcoin. This is a key metric for altcoin traders looking for assets that can generate alpha over the market leader. Similarly, the SOL/ETH pair has risen by an impressive 2.595% to 0.068000 ETH. This outperformance against both market bellwethers signals strong fundamental conviction or speculative interest in the Solana ecosystem relative to its peers. The consistent performance across multiple trading pairs, including SOL/USDC which is up 2.2% to $154.50, confirms that the buying pressure is broad-based. For traders, this divergence is critical; while assets like AVAX are struggling with overhead resistance, SOL is showing characteristics of a market leader, potentially offering more favorable risk-reward opportunities in the current environment.

Eric Cryptoman

@EricCryptoman

Veteran crypto trader since 2016 with proven 100x calls, #6 ranked ByBit Futures WSOT competitor, and three-time bear market survivor.

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