AVAX Price At A Make-or-Break Moment: Is A Rally Possible？

Avalanche (AVAX) price was trading at $34.28 at press time, with a 24-hour volume of $410.54 million, down 17.72% in the last week.

AVAX has a circulating supply of over 411 million tokens and a market capitalization of $14.11 billion.

As the crypto tests the $32.43 Fibonacci retracement level, a critical juncture, well see whether this zone can inspire new highs or lead to further gains.

Testing the $32.43 Fibonacci Retracement Level

The critical support zone during the market corrections is widely believed to be at $32.43, which coincides with the 38.2% Fibonacci retracement level.

At this level, AVAX would potentially be forming a pivotal point for a reversal to the bullish, having already retraced 38.2 percent of its previous uptick.

The 38.2% retracement level is historically an area where new price increases are launched.

If this support holds, AVAX price can ride an upward momentum toward resistance at $50.

That said, should a break below this level, more drops are likely, with potential support in the $26–$29 region (50%, 61.8% Fibonacci retracement zones).

This level is a ‘make or break’ moment for the cryptocurrencys recovery but traders are keeping an eye on it.

Avax Price Technical Indicators Reflect Mixed Momentum

AVAX is slightly above the lower Bollinger Band at $32.02 on the daily chart, suggesting potentially oversold conditions.

Key resistance comes from the upper Bollinger Band of $41.01 and the midline at $36.51 becomes an immediate barrier to recovery.

A break under the lower band could see AVAX price return to test the $30.00 support.

Market sentiment is weak as momentum indicators. It has negative momentum, as the RSI (the Relative Strength Index) currently sits at 37.28, just below the oversold territory.

But it would require a sustained move above 50 to show increased buying interest.

The MACD indicates bearish momentum, with the signal line (-1.20) below the MACD line (-0.39) and narrowing histogram bars suggesting the selling pressure may be slowing.

Open Interest and Market Participation

AVAX open interest on futures is at $653.27 million, down 4.20% in the last 24 hours, according to Coinglass data.

However, open interest has remained high all year long and has reached nearly $800 million, suggesting that traders have continued to show up.

Open interest usually spikes before price volatility, and the present values indicate that the markets confidence in AVAX remains high.

Moreover, AVAXs daily trading volume also rose by 5.17 percent to 595.31 million, which reveals high market engagement.

The data indicates there is a lot of scrutiny on the $32.43 AVAX price level by traders, who would likely respond to the cryptocurrencys price movements moving away from the key zone.