Avalanche Stabilizes Near $10 as Selling Pressure Fades

Avalanche is showing early signs of stabilization after an extended corrective phase, with price currently trading around $10.14 at the time of writing.

Following a sustained decline from the mid-January highs, AVAX has reached a technically significant area near the lower boundary of its descending channel, where selling momentum has begun to slow.

The structure highlights a broader bearish channel that has contained price action since November.

Multiple triangle patterns and failed rebounds along the way confirm that sellers have remained in control throughout most of the move. However, the latest leg lower appears different in character.

After rejecting from descending resistance near the $14.50–$15.00 zone, AVAX accelerated downward before finding support between $9.70 and $10.00. This area has now acted as a reaction zone, with price repeatedly defending the lower channel boundary rather than breaking cleanly below it.

Short-term price behavior suggests exhaustion rather than continuation. The sharp dip below $10 was quickly reclaimed, and subsequent candles show compression instead of follow-through selling. This shift indicates that aggressive downside pressure is weakening, even though the broader trend has not yet reversed.

Structure points to base formation, not trend reversal

According to the analysis shared by GainMuse, Avalanche is transitioning from liquidation-driven movement into early base development. Unlike previous breakdowns, price is now respecting support instead of cascading lower, suggesting that sellers are losing momentum.

As long as AVAX holds above the $9.70–$10.00 support zone, the market structure favors consolidation and a potential technical rebound. A sustained base could allow price to rotate higher toward the $11.50–$12.00 region, which aligns with the mid-channel area and prior breakdown structure.

That said, this remains a counter-trend setup. The descending resistance line continues to cap upside attempts, and a clean breakdown below $9.70 would invalidate the base scenario and reopen downside risk.

Conclusion

Avalanche is no longer exhibiting aggressive sell behavior. With price stabilizing near $10.14, the current structure suggests a shift from trend continuation toward range formation and base building. While a confirmed trend reversal is not yet in place, downside pressure has clearly eased.

For now, the $9.7–$10 zone remains the key level. As long as it holds, Avalanche has room to attempt a recovery within the broader descending structure.

The post Avalanche Stabilizes Near $10 as Selling Pressure Fades appeared first on ETHNews.