Avalanche (AVAX), the native token of the Avalanche blockchain, is showing signs of resilience despite rising tensions between the U.S. and China. After dipping to $17.60 earlier in the week, AVAX has recovered slightly and is now trading around $19. Investors are closely watching the token as it flirts with the critical $20 resistance level.
Tariffs Stir the Market, but AVAX Holds Steady
The latest wave of U.S. tariffs and China’s strong 34% retaliatory move have rattled traditional markets, triggering a pullback in riskier assets. But some traders have turned their attention to crypto—especially coins like AVAX that are less directly tied to global political turbulence.
While stocks struggled, AVAX held a steady course between $18 and $19. This stability in a choppy market has sparked hope among traders that a breakout could be coming.
Technicals Hint at a Potential Breakout
AVAX recently topped out at $22 but fell back into the high teens. Despite the short-term pullback, technical indicators show that the bearish momentum might be fading. The price is now approaching resistance near $19.88, with moving averages starting to converge—a possible sign that a shift is coming.
The Relative Strength Index (RSI) sits around 42, putting AVAX in a neutral to slightly oversold position. If buying volume increases and RSI crosses above 50, it could confirm a bullish move. A clean break above $20 would be a strong signal for more upside.
What’s Next for AVAX?
With global markets still uncertain, some investors are looking to crypto as a safer alternative. Avalanche could benefit from this shift, especially if Bitcoin’s recent recovery continues and lifts the broader market.
For now, AVAX is at a key crossroads. If it breaks above $19.88, we could see a move to $20 and beyond. On the flip side, if it fails to hold current support, a dip back to $17.50 isn’t out of the question.
One thing’s for sure: traders are keeping a close eye on Avalanche as it moves through this consolidation phase.
