Avalanche (AVAX) price it settled near $6.65 after rising more than 3% this week, recovering from a recent low of around $6.10. The move has changed short-term sentiment, as consumers are back in the running. However, weekly patterns remain stable, setting up a battle between short-term optimism and long-term resistance.
What’s next for AVAX? Will the interest rate go up to $10?
Short-Term Price Analysis: Bulls Measure Short-Term Changes
The 4-hour chart has turned in favor of the buyers after the AVAX broke above its downtrend, ending the previous week’s lows and lows. The breakout was accompanied by a significant increase in volume, indicating renewed buying interest rather than a downward move.
The Supertrend indicator has changed significantly, reinforcing the short-term trend. Meanwhile, the MACD has completed a strong consolidation, with the histogram expanding into positive territory, indicating that the trend is expanding.
Despite the breakout, AVAX is now testing the upper limit of the channel as resistance near $6.70–$6.80. A successful close above this area could lead to an extension to $7.20, while the buying pressure could show the next resistance near $8.00. The failure to stay above the break point, however, could return to $6.30, while the resistance of the previous trend could act as a new support.
Long-Term Price Analysis: Weekly Trends Still Need Confirmation
Although the short-term trend has progressed, the weekly chart offers a cautious outlook. AVAX continues to trade within the downtrend that has been known since the end of 2025, indicating that the stock market is still on the uptrend.
The RSI remains below 40, indicating that the long-term momentum remains weak despite settling near recent lows. At the same time, Chaikin Money Flow (CMF) remains in negative territory, which means that investment returns are not returning in a profitable way. These indicators mean that the demand for institutions remains low during peak periods.
For the weekly trend to improve, AVAX needs to start retrieving the upper limit of the downtrend before challenging the $10.20 resistance level. A definite break above this area will be the first sign of a long-term reversal and open the door to $16.80 in the coming months. Until then, the weekly trend continues to be conservative despite the positive short-term outlook.
Can the Avalanche recover from its temporary implosion?
The 4-hour chart shows that AVAX is trying to recover, but the weekly chart reminds traders that the major downside remains. In the short-term, a hold above $6.30 would make a break-even plan acceptable and increase the chance of a move to $7.20–$8.00.
However, real long-term change requires more than short-term breakouts. The bulls had to retake the weekly channel and break through $10.20 before the market made a bold transition from a recovery to a stable trend. Until then, the current rally should be seen as an early sign of strength rather than confirmation that the major decline is over.
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