<p>Avalanche is showing early signs of stabilization after an extended corrective phase, with price currently trading around $10.14 at the time of writing.</p>
<p>Following a sustained decline from the mid-January highs, AVAX has reached a technically significant area near the lower boundary of its descending channel, where selling momentum has begun to slow.</p>
<p>The structure highlights a broader bearish channel that has contained price action since November.</p>
<p><img src="https://www.ethnews.com/wp-content/uploads/2026/02/AVAXUSDT_2026-02-03_16-08-24.png" alt="" width="2464" height="1878"></p>
<p>Multiple triangle patterns and failed rebounds along the way confirm that sellers have remained in control throughout most of the move. However, the latest leg lower appears different in character.</p>
<p>After rejecting from descending resistance near the $14.50–$15.00 zone, AVAX accelerated downward before finding support between $9.70 and $10.00. This area has now acted as a reaction zone, with price repeatedly defending the lower channel boundary rather than breaking cleanly below it.</p>
<p>Short-term price behavior suggests exhaustion rather than continuation. The sharp dip below $10 was quickly reclaimed, and subsequent candles show compression instead of follow-through selling. This shift indicates that aggressive downside pressure is weakening, even though the broader trend has not yet reversed.</p>
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<h3 id="structure-points-to-base-formation-not-trend-reversal">Structure points to base formation, not trend reversal</h3>
<p>According to the analysis shared by GainMuse, Avalanche is transitioning from liquidation-driven movement into early base development. Unlike previous breakdowns, price is now respecting support instead of cascading lower, suggesting that sellers are losing momentum.</p>
<p><img src="https://www.ethnews.com/wp-content/uploads/2026/02/IMAGE-2026-02-03-160755.jpg" alt="" width="1280" height="673"></p>
<p>As long as AVAX holds above the $9.70–$10.00 support zone, the market structure favors consolidation and a potential technical rebound. A sustained base could allow price to rotate higher toward the $11.50–$12.00 region, which aligns with the mid-channel area and prior breakdown structure.</p>
<p>That said, this remains a counter-trend setup. The descending resistance line continues to cap upside attempts, and a clean breakdown below $9.70 would invalidate the base scenario and reopen downside risk.</p>
<h3 id="conclusion">Conclusion</h3>
<p>Avalanche is no longer exhibiting aggressive sell behavior. With price stabilizing near $10.14, the current structure suggests a shift from trend continuation toward range formation and base building. While a confirmed trend reversal is not yet in place, downside pressure has clearly eased.</p>
<p>For now, the $9.7–$10 zone remains the key level. As long as it holds, Avalanche has room to attempt a recovery within the broader descending structure.</p>
<p>The post <a href="https://www.ethnews.com/avalanche-stabilizes-near-10-as-selling-pressure-fades/" rel="noopener noreferrer nofollow">Avalanche Stabilizes Near $10 as Selling Pressure Fades</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.</p>

Avalanche Stabilizes Near $10 as Selling Pressure Fades

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