#Avalanche (AVAX) Price Plummets After $26.50 Resistance Rejection: Can Strong Fundamentals Spark a Rebound?

Avalanche ($AVAX ), a leading Layer-1 blockchain, has hit a turbulent patch, erasing nearly all its weekly gains after failing to breach the critical $26.50 resistance level. As of September 4, 2025, #AVAX trades at approximately $24.72, clinging to a modest 0.5% weekly increase, according to live market data. Despite this setback, the Avalanche ecosystem's robust fundamentals, particularly the surging activity on its C-Chain, continue to fuel optimism for a potential recovery. With institutional partnerships gaining momentum and network usage soaring, AVAX remains a focal point for traders and investors alike. This article explores the recent price action, technical challenges, and the underlying strengths that could shape AVAX’s trajectory in the coming weeks and beyond.

AVAX Price Struggles After Rejection at Key Resistance

The recent price action for AVAX has been a rollercoaster. After a promising 39% rally over the past 60 days, the token faced a sharp rejection at the $26.50 resistance level, a threshold that has repeatedly capped upward moves in 2025. This failure triggered profit-taking, wiping out much of the weekly progress and leaving AVAX trading just 0.5% higher on the weekly chart. The pullback has raised concerns among traders, with some eyeing a potential slide toward lower support levels if bearish momentum persists.

Technical indicators paint a mixed picture. The Relative Strength Index (#RSI ) currently sits at 49.72, indicating neutral momentum with no immediate signs of overbought or oversold conditions. However, the #MACD histogram has turned bearish, with a reading of -0.1249, signaling waning #bullish momentum. Trading volumes have also softened, dropping by 32% in daily turnover, which suggests a lack of conviction among buyers. For bulls to regain control, AVAX must reclaim the $25.46 pivot point, a level that could restore confidence and pave the way for another attempt at $26.50...

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