Avalanche Price Analysis of March 7, 2025: AVAX Fake Breakout at $22.5 Led to $20 Crash, Can It Regain $21 Today?

Are you thinking of investing in AVAX and looking to get into the Avalanche price analysis? On March 7, 2025, at 06:45 UTC, Avalanche (AVAX/USDT) was trading at $20.62 following a highly volatile session that saw multiple support-resistance tests, a sharp breakdown, and an attempted recovery. The price action throughout March 6 and 7, 2025, was characterized by significant fluctuations, with key technical indicators such as RSI, MACD, and trendline breakouts providing crucial insights into market movements.

Analyzed by baishnabtriparna, published on TradingView on March 7, 2025

$21.00 Support Breakdown: The Catalyst for AVAX’s Sharp Decline

According to Avalanche Price Analysis, AVAX’s price trend achieved its initial peak value at $22.50 on March 6, 2025, which resulted in multiple failed attempts to stay above that level due to resistant pressure. The price failed to keep momentum on the upside of this resistance area, which resulted in a steady market downfall. Support at the $20.80-$21.00 region initially rallied buyers before the increased selling pressure took over.

The AVAX price suffered a major drop below $21.00 at midnight on March 7, 2025, which started a swift price decline. AVAX experienced a steep price fall that reached its lowest point during this day at $19.50 which proved that bearish forces were gaining strength. The evidence showed support for this price decline when RSI readings entered an oversold zone and displayed a Death Cross pattern on MACD, which revealed substantial bearish market trends.

The Crucial Level That Could Change AVAX Price Trend

AVAX struggled to maintain sustained growth during its downtrend phase because its several weak price rallies did not succeed in pushing prices above vital resistance areas. The market’s response to each price recovery showed increased investor uninterestedness which validated the bearish market direction. Trading volume reached high points during sell-offs while revealing that numerous sellers engaged in the market. As the price moved toward the $19.50 support area, increasing buying interest started to appear, thus suggesting a potential trend change. Historical patterns indicated robust market interest during past price levels within this region therefore traders paid close attention to this area.

A reversal trend developed at 03:30 UTC on March 7, 2025. The MACD displayed a Golden Cross indicating changing market momentum because it signaled buyers entering to drive prices up. Market conditions indicate that investors should consider purchasing opportunities because the RSI has passed its oversold state. AVAX price trend made a recovery move that raised its value toward $20.62 as it built higher low points while signaling potential growth toward the $21.00 resistance target.

Avalanche Price Analysis: RSI and MACD Indicator

The RSI monitored key point indicators that showed both an overbought zone near 70 at 15:00 UTC on March 6, which happened at the time of resistance rejection, and an oversold point below 30 at 02:00 UTC on March 7 during the breakdown’s lowest point. The MACD Death Cross signals created at 18:00 UTC and 23:30 UTC on March 6 validated the bearish market direction until the MACD Golden Cross formation occurred at 03:30 UTC on March 7.

AVAX Price Prediction: Will $21.00 Resistance Be Broken, or Will Sellers Take Control?

This previous support region at $21.00 functions as an essential barrier to overcome following the breakdown. AVAX price prediction suggests that it would likely fall to $19.80 support if the $20.80-$21.00 resistance area stays unbroken, followed by another attempt to rise through $21.50-$22.00. The traders can use Fibonacci retracement analysis together with moving average trend projection to gain better insights about future price behavior.