Avalanche (AVAX) Price: Is This the Bottom Before the Next Bull Run?

TLDR

Avalanche (AVAX) is trading at $20.62, down 1.37% in 24 hours, holding above key $20 support level SEC delayed Grayscale’s AVAX ETF decision to July 15, 2025, keeping the token in regulatory spotlight Technical analysis shows AVAX testing a crucial trendline support around $20.50 that held during May recovery On-chain Bubble Risk metric dropped below 1.0 to 0.916, indicating potential undervaluation Weekly chart patterns suggest a bull flag formation with long-term price targets reaching $300

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Avalanche is trading at $20.62, marking a 1.37% decline over the past 24 hours. The token sits just above the critical $20 support zone while facing important technical and regulatory developments.

Trading volume dropped 46.81% to $280.81 million, suggesting investor hesitation or typical weekend trading patterns. Over the past week, AVAX has declined 8.46%, indicating consolidation within a tight trading range.

The SEC has set July 15, 2025, as the new decision date for Grayscale’s proposed AVAX spot ETF. This delay keeps Avalanche in the regulatory spotlight despite not providing immediate market impact.

ETF conversations often influence sentiment and maintain investor attention. The regulatory decision could shape AVAX’s future market outlook depending on the outcome.

Avalanche
AVAX Price

Technical Analysis Shows Critical Support Test

AVAX is currently testing a familiar trendline that acted as solid support during May’s recovery period. The price hovers near the $20.50 level, which intersects with this key technical support line.

This creates a potential bounce zone or break point for continued downward movement. If the trendline holds, bulls might attempt to reclaim levels toward $22.80 and eventually the $27 region.

Failure to defend this support zone could open up a slide toward $18 support. The technical setup represents a pivotal moment for AVAX’s short-term direction.

Chart analysis reveals AVAX approaching the upper boundary of what appears to be a bullish flag pattern. This resistance level sits around $23.46 and represents a critical breakout point.

$AVAX daily pic.twitter.com/w4zsAmImLm

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On-Chain Metrics Signal Potential Undervaluation

AVAX’s short-term Bubble Risk has dropped below the 1.0 mark to 0.916, entering what analysts call the “bearish” zone. This reading historically indicates reduced overvaluation pressure.

The current metric suggests AVAX is not overheated and could be in a relatively undervalued state. These readings often appear during local bottoms or consolidation phases before larger price movements.

On-chain data points to AVAX being in a potential accumulation zone. The combination of technical support testing and favorable on-chain metrics creates an interesting setup.

Weekly chart analysis shows AVAX forming what appears to be a classic bull flag pattern over more than a year. The token has been recording higher highs and higher lows between two parallel lines.

This pattern suggests AVAX could be setting up for an upward move if confirmed. Technical analysts have identified long-term price targets reaching $300 if the bull flag breaks to the upside.

A clean breakout from this structure could shift market sentiment, especially with the ETF narrative building in the background. The pattern would represent a 12-fold increase from current price levels.

Market predictions for 2025 show mixed outlooks between conservative and optimistic scenarios. Some analysts forecast AVAX could reach $44.79 by year-end, while others project more modest gains.

Conservative predictions suggest June trading within a tight range between $19.98 minimum and $20.99 maximum. The average monthly price forecast sits at $20.49, closely matching current levels.

AVAX remains on multiple analyst watchlists as altcoins begin attracting more attention. The timing aligns with price testing long-established support and on-chain data pointing to undervaluation.

The combination of the July 15 ETF decision, key trendline support testing, and potential bull flag setup creates multiple variables to watch. Recent Bubble Risk readings add to the narrative that AVAX isn’t overheated and could be resetting for a larger move.

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