Avalanche Faces Resistance as Analyst Eye $16 Support

Avalanche struggles near $26.50 resistance with repeated rejections but strong fundamentals suggest long-term growth remains possible.

Analysts warn of a possible drop toward $16 support even as AVAX maintains higher lows that hint at a broader bullish outlook.

Despite short-term weakness, new products like ULTRA and market adoption could strengthen Avalanche’s ecosystem and investor confidence.

Following several failures close to the $26.50 resistance level, Avalanche (AVAX) is currently under additional pressure, which raises concerns of a more significant pullback. As of this writing, AVAX is trading at $23.73, down 0.73% per day and 7% per week, according to CoinMarketCap.

Persistent Resistance and Technical Weakness

Ali, a crypto analyst, highlighted the repeated failures at the $26.50 zone, noting that AVAX remains locked in a channel pattern. “Avalanche $AVAX faced another rejection at $26.50. Channel pattern suggests a move toward $16 support,” he explained

Source: Ali

The AVAX/TetherUS perpetual chart further reinforces this view, showing four clear rejections since April at the $27,000 resistance level.

Each rejection triggered notable declines, with support near $21,000 and $16,000 repeatedly tested. Moreover, trading volume consistently spiked during these breakdowns, suggesting strong sell-side pressure

Price activity is currently down 4.20% per day at $23,882, and forecasts suggest that it may continue lower toward $18,000–$19,000. The string of higher lows prior to September, however, indicates that the general bullish trend is still in place.

Broader Market Context and Fundamentals

Some analysts are nonetheless upbeat about Avalanche's long-term prospects despite its recent setback. Another cryptocurrency strategist, Jay.eth, noted that since its high in 2021, Avalanche has not lived up to predictions

He said,

AvaX hasn't seen the growth we've expected in the past few years, but expect big moves come alt season.

Moreover, he noted that Avalanche peaked at a market cap of roughly $30 billion in 2021 but now trades below $10 billion, with a fully diluted valuation near $17 billion. Most tokens are already circulating, apart from those held by the foundation

Additionally, developments such as ULTRA, a tokenized U.S. treasury product launched by Libeara and FundBridge Capital with Wellington, highlight expanding blockchain adoption that could indirectly benefit Avalanche’s ecosystem.

Avalanche faces near-term technical pressure, yet its fundamentals and adoption drivers suggest resilience.

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