Avalanche is back in the spotlight as crypto analysts point to a possible breakdown in its price trend. After slipping just above the $18 mark, it looks like AVAX could be gearing up for another leg down. 

Crypto expert Ali has sparked fresh talk on X (formerly Twitter); he noted that the AVAX price is “breaking out of this channel,” which could open the door for a drop all the way to $7.

The chart Ali shared backs up that concern. It shows a technical setup that hints at a potential 60% price drop from where AVAX is right now. After weeks of steady losses, this kind of warning is only adding to the pressure, with traders closely watching to see if AVAX can find its footing or if it’s headed lower.

The price of AVAX has been in a consistent downtrend since reaching its local peak near $55 in December 2024. The daily chart, tracked on Binance, illustrates a pattern of lower highs and lower lows that has remained in place since January 2025. The most recent bounce near $17 formed a small ascending channel, which has now broken to the downside.

The breakdown of this short-term channel signals a continuation of the broader bearish trend. The asset’s current price of approximately $18.91, recorded on April 2, 2025, positions it just above a key support zone between $16.5 and $17. Any confirmed move below this area may reinforce the projected target closer to the $7 level.

Several historical support levels could come into play if downward pressure continues. The $16.5 mark has provided temporary relief, but analysts are now monitoring lower targets at $13.5, $11, $8, and $6. The $4.8 level marks a previous long-term low and could be relevant if selling momentum accelerates.

On the resistance side, the $22.5 area stands as the first potential level to reclaim before any trend reversal is considered. Further resistance levels are located at $26.5, $36.5, and $48, followed by the $56 and $64 zones near previous highs.

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Ali’s tweet pointing to a “breakout” of the ascending channel reflects a bearish technical reading. The setup resembles a failed bullish structure, often described as a bear flag or channel, which tends to resolve to the downside. If this pattern holds, a move toward $7 would match historical support ranges from early 2023 and late 2022.

Market participants are observing whether AVAX price can defend the $16.5 support or if further downside is imminent. The tweet and technical context align with a broader narrative of caution surrounding the asset.

While the $7 target reflects a steep decline, it remains consistent with historical price zones. For AVAX price to invalidate the bearish structure, it would need to recover above $22.5 with volume. Until then, the prevailing sentiment remains cautious as analysts track how the market reacts to current technical breakdowns.

AVAX remains under scrutiny as the asset tests the limits of its structural support zones.

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The post Avalanche (AVAX) Price Dip Incoming? Expert Warns of a Brutal 60% Crash appeared first on CaptainAltcoin.

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