Will $41 Be The Bounce-Back Zone for AVAX Price Amid Retrace?

Avalanche (AVAX) price faced a crucial retracement as it tested the $41 support zone, with 150,000 wallet addresses holding 8.93M tokens.

This level remained critical for determining the asset’s next move, with buyers monitoring closely for a potential rebound.

Avalanche (AVAX) Price Faces Retracement: Key $41 Level Holds Critical Support

According to IntoTheBlock data, Avalanche was in the process of a bear pattern that other altcoins have experienced as well.

However, it was in this period that the critical price level had been determined to be $41 and could have a role to play in the future of the token.

Based on this, some 150,000 wallet addresses held transactions involving over 8.93 Million AVAX tokens at the $41 price level.

This level could be considered a significant base that could find demand among purchasers. It has already demonstrated its ability to remain an area of interest for several years.

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The high concentration among holders made this level a significant one when determining AVAX’s price volatility patterns.

From this perspective, the selloff below the $41 level could help increase the pressure. It could cause a shift in the bullish trend for the short-term perspectives towards AVAX.

Avalanche Maintains Bullish Outlook for 2025 with Key Levels Identified

InvestingHaven defined the bull case for AVAX in 2025 based on key Fibonacci retracement zones.

The $32.43 level at the 38.2% Fibonacci provided clear support that strengthened the argument for buying in the token.

This why the $32.43 price level should not be revisited if AVAX is to sustain an upward trajectory that has been expected to hit a far-fetched $112.24 by 2025.

A break of the $32.43 support level supports the argument for the advancement of the asset’s price for AVAX.

The indicated levels of resistance and support make it easier to understand the trends of price and the key levels for the breakout.

Therefore, if the momentum will keep on increasing, it means that the target of $112.24 is achievable. It holds high potential for AVAX investors.

AVAX Faces Key Support as Price Tests $43.43

Analysis indicated that the price fell below the green moving average. It is a sign of short-term bearishness, bouncing at $46.88.

AVAX traded above an extremely important support level of $41.10. Resistance levels marked $48.29, $54.40, and a long-term target of $65.00.

The Accumulation/Distribution line was currently at 10.31 Million. That showed that there was a constant foreign investment inflow, though it was coming down.

This suggested that there was some selling pressure, but a lot of buying pressure was being built.

The RSI currently stood at 49.79. It set back from the 69.41 high, which indicated that the buying pressure was fading out but the asset was not oversold.

Taking it all into perspective, AVAX which was close to support levels, could consolidate and reverse back up to the $48.29 level if buyers hold the $41.10 support level.

On the other hand, the fade of support could open AVAX to further downside towards 19.80, a long-term support level.

AVAX Futures Open Interest Peaks Above $600M Amid Price Surge

The open interest for the AVAX futures hit the highest high at over $600 Million and continues to ascend towards $700 Million to December.

This increase corresponded with the price surge of AVAX that reached $70 and the speculations that followed the high demand hitting the market.

The open interest followed higher prices depicting actual interest in the market, with traders and institutions more confident in AVAX’s future.

This new high in open interest raised awareness of derivative trading, in which traders take positions on future price rises and declines.

The growth rate remained horizontal during the year 2024, and the sharp increase in December directed the expectations towards volatility.