Avalanche price tests support as bearish wedge signals risk

Avalanche price is struggling to hold the $13 level as bearish chart structures remain intact despite rising trading activity and steady ecosystem growth.

Avalanche was trading at $13.20 at press time, down 0.2% over the past 24 hours. The token has moved within a seven-day range between $12.87 to $14.63 and is now down 2.4% over the past week.

On a monthly view, AVAX has lost roughly 15%, keeping price action pinned near a key support zone that has repeatedly come under pressure.

Trading picked up even though the price barely moved. Avalanche’s (AVAX) 24-hour volume jumped 41% to $301 million, suggesting more traders are stepping in as the token tests lower levels.

On the derivatives side, futures activity grew 21% to $591 million, and open interest edged up 1.2% to $515.5 million, as per CoinGlass data. This shows that many traders are opening new positions rather than closing existing ones.

Ecosystem progress fails to lift price

Avalanche has seen steady growth on its network as 2025 comes to a close, but the gains haven’t yet pushed prices higher. Activity on the C-Chain keeps expanding, while total value locked on the uptrend. Meanwhile, the stablecoin supply has grown to over $1.5 billion, showing that new capital is flowing into the ecosystem.

Institutional interest in Avalanche has picked up as well. AVAX was recently added to the Bitwise 10 Crypto Index ETF. Expanded custody support for USDC on the C-Chain, along with more involvement from institutional funds, has reinforced the token’s long-term case.

Still, weakness across the broader market has kept momentum in check, leaving prices exposed to technical pressure.

Avalanche price technical analysis

AVAX remains stuck in a long-term downtrend. Every major rally since the token last traded above $30 has been stopped by a descending trendline, and that pattern is still in place. As a result, the market’s overall bias continues to lean toward the downside.

After the last sell-off, a rising wedge has already broken to the downside, confirming that the bearish trend is still in play. Price is now tightening around the $13 mark, forming a shape similar to a descending triangle.

Sellers continue to push from above, while buyers try to hold the flat support below, raising the chances of a breakdown if that level gives way. 

Momentum is low but not extreme. The relative strength index sits around 42, under the neutral line, suggesting buying interest is limited. After the sharp drop from the $28–$30 range, trading volume has cooled, showing that selling pressure has eased, though demand remains cautious.

If the $13 support breaks, the next key level could be near $11.50, with $10 acting as a stronger floor.  AVAX would need to push back into the $15.50–$16 range on stronger volume to relieve near-term bearish pressure.