Avalanche Price Prediction: AVAX Battles to Hold $16 Support Zone

Critical $16 Support Shapes Avalanche’s Next Move

Avalanche (AVAX) is poised for a significant move after weeks of continuous bearish movement, with the token lingering around the $16 price mark, which has historically been a driver of bullish reversals. As traders debate the odds of another rebound against the building selling pressure, the next move of the market will play a key role in whether AVAX can find short-term momentum back to its previous highs or plunge further into new lows.

$16 Support Defines AVAX Price Prediction

The chart shared by analyst Ali identified the $16 zone as a level that has been a long-term support for Avalanche. Since March, this zone has been the source of powerful rebounds multiple times, which is the psychological and technical threshold for buyers. Every approach towards this floor has seen renewed demand, and significant recovery has resulted.

AVAXUSD 1D CHART | SOURCE: X

However, the current test seems to be more critical. AVAX has suffered weeks under pressure, and a decisive drop below $16 would be the first sustained breach of this zone in 2025. If that happens, then the token could expand losses to $14 and even to $12.80, where the next visible demand clusters will form.

On the flip side, a successful defense of this level could spur renewed confidence. A close above $17, on increasing volume, each day may signal the beginning of a corrective upswing to $19-$21. Historically, Avalanche has reacted strongly to bounces from similar conditions, suggesting that the setup could be once again bullish if buying momentum holds.

Prolonged Downtrend Caps Short-Term Upside

Despite the structural support, AVAX is trading within the broad downward trend since early October, when it traded above $32. The trend of lower highs and lower lows strengthens the bearish trend. Consolidation is around price action of $16.28, but the repeated failure to close above $17-$18 indicates that sellers continue to hold the upper hand.

AVAXUSD 1D CHART | SOURCE: CoinMarketCap

Indicators also reflect a cautious tone. The Relative Strength Index (RSI) at 30.74 shows that conditions are oversold, with no confirmation of a reversal. Volume has thinned, with a declining interest from both sides. For any sustained recovery, buyers need to defend $16 and get back above $18 with conviction. Otherwise, Avalanche risks another leg lower towards $14.50.

Future Outlook

In the bigger picture, the existing pressure on Avalanche is consistent with the market trend in general. Bitcoin has become 60% dominant, sucking liquidity out of the altcoins and decreasing the amount of capital flowing in. AVAX has reduced its trading volume by 47% to $442 million, indicating less participation.

Still, on-chain fundamentals are strong, with more than 40 million daily transactions on Avalanche and furthering partnerships such as Visa integration. However, until sentiment changes and liquidity returns, recovery may remain subdued.

Avalanche price prediction shows a market caught at a crossroads, with $16 being both a line of defense and a test of conviction for bulls calling for a turnaround.