Avalanche (AVAX) has experienced mixed performance for most of the year. The coin could be setting up a decisive bearish move that may push it toward new 2022 lows in the coming days or weeks. The analysis follows below, but first, here are some key points to remember:
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Avalanche (AVAX) may face speculative bearish pressure from short sellers in the near term.
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There is very limited upside potential for the coin at the moment.
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At the time of writing, AVAX traded near $71, down roughly 6% on the day.
Data source: TradingView
Avalanche (AVAX) – Why could 2022 lows be revisited?
AVAX began the week on the offensive. Like many altcoins, it saw gains early on, but that momentum appears to have faded. Instead, the coin remained sluggish throughout the week and is approaching an important supply zone that could trigger significant short-selling activity.
That pressure could drive AVAX down toward $57, a decline of nearly 30%. If that occurs, it would mark the lowest price for the coin in 2022. The primary challenge for AVAX right now is the limited upside potential; the market structure does not suggest a strong rally in the immediate term.
Much of the recent price action has been driven by short-term traders, who may be taking profits or initiating bearish positions. If AVAX bulls can push the price back above $90, some recovery could follow, but given current market volatility, that scenario remains unlikely.
Is AVAX a good buy now?
That depends on your strategy. For short sellers looking to bet against the coin, this could be an attractive entry point. Long-term investors, however, may prefer to wait a week or so. A pullback toward $57 seems plausible, and that could offer a lower-risk buying opportunity to accumulate AVAX for the long term.