Avalanche (AVAX) Drops Below $27, with Analysts Predicting a Potential Crash to the $20 Mark as Bearish Pressure Intensifies

As altcoins prepare for a reversal rally, multiple blue-chip tokens continue to struggle. One such token is Avalanche, down by 3.6% over the past 24 hours.

As altcoins gear up for a reversal rally, several blue-chip tokens continue to face the heat. One such token is Avalanche, which is trading down by 3.6% over the past 24 hours. This brings the 7-day return to an alarming -18.3%.

Dropping under its $11 billion market cap, AVAX is now trading at $26.90. Amid the increasing bearish influence, will Avalanche find a bullish reversal spot, or is it doomed to crash under $20?

Avalanche Price Analysis: Dropping Below Key Support, Doomed To Crash Under $20?

On the daily chart, the AVAX price trend reveals a bearish breakdown of a local support trendline, forming a falling-channel pattern with a parallel resistance trendline.

On February 2, a 14.95% drop in Avalanche resulted in the breakdown rally. With the downfall, Avalanche also lost the crucial support level at the 61.8% Fibonacci level ($28.91).

The ongoing downfall started after the morning star pattern near $34.34, and over the past five days, the downtrend has erased 21.66% of AVAX’s market value.

With a post-retest fall from the 61.80% Fibonacci level, Avalanche is nearing the 78.60% Fibonacci level at $24.34. While the short-term intraday recovery of 1.4% hints at a brief bullish bounce, the bearish influence reveals a strong possibility of a downtrend continuation.

This is highlighted by the Trend Strength Index (TSI), which has dropped below the halfway level and now stands at -0.89, indicating an extremely bearish trend.

Furthermore, the downfall has influenced a massive downtick in the lower Bollinger Band, accompanied by a sharp fall in the 20-day EMA line.

AVAX Price Targets: Analyst Puts $20 On RadarHighlighting the potential for a major decline, crypto analyst Ali Martinez points to significant downside risk in the AVAX price trend.

Martinez highlights a triangle breakdown rally on the 5-minute chart, predicting that Avalanche’s downtrend could lead to a drop to the $20 psychological mark. Based on price analysis, the downtrend will likely fall below the 78.60% Fibonacci level at $24.34.

This would make the $19.55 support level the next price target, indicating the potential for a fall below $20. On the upside, the 61.80% Fibonacci level at $28.91, which aligns with the broken support trendline, remains a key resistance level.