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AVAX Plunges 9% as Global Economic Tensions Rattle Crypto Markets
Avalanche token forms potential double bottom pattern at $19.97 support level, but bearish momentum persists amid broader market uncertainty.
Jun 2, 2025, 2:42 p.m.
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What to know:
• AVAX has dropped 8.65% in 24 hours, falling from $21.84 to $20.11 amid significant selling pressure.
• Geopolitical tensions and trade disputes between major economies are creating volatility across cryptocurrency markets.
• A double bottom pattern formed at the $19.97 support level suggests potential consolidation, though bearish momentum remains dominant.
Global economic uncertainties and escalating trade tensions have sent ripples through cryptocurrency markets, with experiencing a sharp 8.5% decline over the past 24 hours.
Despite forming a potential double bottom pattern at the $19.97 support level with increased buying volume, the overall bearish sentiment continues to dominate AVAX's price action.
STORY CONTINUES BELOW
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Technical Analysis
• AVAX experienced a significant downtrend over 24 hours, falling from $21.84 to $20.11.
• Pronounced selling occurred when price dropped sharply from $21.49 to $21.01 on exceptionally high volume (2.56M).
• Support emerged at $20.00 with substantial buying volume (1.73M), though absence of meaningful recovery suggests bearish momentum remains dominant.
• AVAX demonstrated a volatile recovery attempt from $20.00 support, initially climbing to $20.38 before experiencing a sharp selloff to $19.97.
• Subsequent price action formed a double bottom pattern with increased buying volume, allowing recovery to $20.13 by session's end.
• Consolidation between $19.97-$20.35 suggests potential base formation, though overall bearish momentum remains intact with resistance at $20.35.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
