The broader cryptocurrency market is undergoing one of its steepest declines this year, fueled by renewed geopolitical tensions stemming from a tariffs dispute led by former U.S. President Donald Trump. This escalation has shaken global financial markets, and digital assets have not been spared. Over the past 24 hours, Bitcoin (BTC) has dropped 6%, while Ethereum (ETH) has fallen by a significant 15%.
Among major altcoins, Avalanche (AVAX) has experienced a 9% daily decline, extending its 90-day correction to approximately 64%. Despite the prevailing bearish sentiment, a deeper technical analysis of AVAX suggests a potentially bullish scenario — one that mirrors a historic setup from 2021 and could precede a major reversal.
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AVAX Chart Resembles 2021 Bullish Breakout Pattern
A comparative analysis of AVAX’s current price structure with its 2021 daily chart reveals striking similarities. In late 2021, AVAX formed a falling wedge pattern, a classic technical formation known for signaling bullish reversals. At that time, AVAX bottomed between $9.50 and $11.50, found support at the 50-day moving average (MA), and then surged over 560% in the weeks that followed.
Today, AVAX appears to be retracing a near-identical trajectory. The price has once again pulled back into a key support range of $14.50 to $16.50, closely resembling its 2021 behavior. A curved base is forming beneath the price action, which may serve as the structural foundation for a future parabolic move.
In addition to the wedge formation, AVAX is currently consolidating just below the 50-day MA — the same technical condition that preceded its explosive breakout in 2021. This convergence of chart patterns strongly suggests that AVAX could be entering a significant accumulation phase.
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Will the Pattern Repeat?
While no technical setup can guarantee performance, the resemblance between AVAX’s current structure and its 2021 chart is compelling. The presence of a falling wedge, support at historical price zones, and positioning beneath the 50-day MA all indicate a potential bottoming process.
With broader market sentiment still fragile due to macroeconomic factors, timing remains uncertain. However, if bullish momentum returns to the crypto space, AVAX may be well-positioned to lead the next wave of altcoin rallies.
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Conclusion
Avalanche’s current technical formation offers a glimmer of optimism amid market-wide uncertainty. Traders and investors should monitor key support levels, watch for a breakout from the falling wedge, and observe volume dynamics around the 50-day MA. If the pattern holds true to its historical precedent, AVAX could soon transition from decline to liftoff — echoing its 2021 breakout and offering substantial upside potential.
