AVAX Price Analysis of March 6, 2025: Avalanche Attempts to Break $22.5 Resistance Level, Will It Shatter Today?

Are you wondering if this is the best time to invest in Avalanche? As of today, March 6,2025, the AVAX/USD trading session on Binance showcases a strong bullish momentum with key support and resistance levels shaping price action. The market experienced significant breakouts, consolidations, and corrections, indicating an active trading environment. This analysis delves into price movements, technical indicators, and market sentiment, providing a detailed breakdown of AVAX’s performance.

Analyzed by baishnabtriparna, Published on TradingView on March 6,2025

Support and Resistance Levels

The support zone at 19.50 to 19.80 was significant enough to avoid a deeper fall in AVAX/USDT as of around 21:00 UTC on March 5, the lowest the current price approached $19.50 by marking a daily low before regaining strength. A strong rejection from this level showed bullish pressure, starting a rally.

As the price began to recover, it faced the resistance at $20.50, which kept limiting its growth until 00:00 UTC on March 6, when AVAX managed to climb above it. This breakout was achieved on higher trading volume, confirming a change in the market towards bullish sentiment. AVAX maintained its rally, with the coin hitting an intra-day high of $22.50, at around 02:30 UTC on March 6.

AVAX Price Analysis: Breakout and Price Movements

The AVAX price action shows that breakout above $20.50 at 00:00 UTC on March 6 was a defining moment for sentiment heading into bullish territory. Then, as the price went over the said resistance line, it became a support zone that enabled AVAX to continue towards $21.50 with only a slight retracement. Later, the price made a short consolidation and continued its movement to the upside.  Avalanche price trend peaked at $22.50 at 02:30 UTC at which point sellers started to jump in thus leading to a slight roundtrip. Currently, AVAX has settled back at around $22.25, just below $22.50, as of the latest assessment at 04:22 UTC. But this phase of consolidation may you still point to a new level of support being formed, a pullback before an additional breakout attempt, etc.

Momentum Indicators Analysis

The RSI in the AVAX price action chart indicated important overbought and oversold conditions. When RSI crossed back over 70 around 06:00 UTC and 02:00 UTC, it indicated that the market was reaching overbought territory and a correction could be on the way. On the other hand, when RSI fell under 30 on March 5 at 21:00 UTC, it indicated too much selling activity and subsequently produced a powerful uptrend.

The MACD also offered further clues regarding potential trend reversals. At 18:00 UTC on March 5, the two-hour MACD line crossed above the signal line, leading to the confirmation of the formation of a Golden Cross at this time and, thus, the showing of great bullish momentum. But where there were bearish Death Crosses at 12:00 UTC and 03:00 UTC respectively warning of potential pullbacks.

Future Price Projections

According to AVAX price analysis, if AVAX can hold support in the $22.00-$22.25 area, then another breakout attempt above $22.50 could ignite a rally toward the $23.00 — $23.50 level. If the coin maintains the uptrend, a break above $23.50 will allow DOGE to gain momentum towards $24.00 in the coming sessions. However, if the Avalanche price trend falls below $22.00, a touch of $21.50 may be seen. If they face increased selling pressure, the price may return to $20.50. As long as the $20.50 area holds, we can expect a move to the upside; Loses should see a deeper correction towards the $19.80 – $19.50 support zone.

Conclusion is that AVAX showing strong bull with key support on 19.50 - 19.80 level and resistance on around 22.50. The breach above $20.50 changed the narrative in a big way. However, the ongoing consolidation stage indicates that the traders need to track volume and momentum indicators closely to determine whether AVAX will persist or experience a pullback.