The AVAX Double Bottom Pattern: Are We Looking at a Major Reversal?

The Avalanche (AVAX) monthly chart is currently displaying a textbook double bottom formation, and the implications are significant. With AVAX trading at $14.22, we’re positioned just above a critical support zone that could define the next major cycle leg. Let’s dive into what the charts are telling us.

Current Price Action & Technical Setup

AVAX is holding steady around $14.22, but the real story lies beneath the surface. The monthly chart reveals a clear double bottom reversal pattern that typically precedes substantial institutional accumulation phases. This formation is characterized by two distinct lows that establish a strong support foundation.

The support zone is tightly defined between $8.83 and $13.02—this is where the bulls are making their stand. As long as AVAX respects this floor, the bullish structure remains intact and suggests we’re approaching a potential multi-year low rather than deeper capitulation. This level acts as the last line of defense for the macro uptrend.

Why This Pattern Matters

A confirmed double bottom breakout typically targets major resistance levels. Current projections point to high-volume resistance around $170, with longer-term targets potentially reaching $253.31 by 2026. That represents a massive upside opportunity from current prices—we’re talking about potential 10x+ gains if this plays out as expected.

The key here: as long as that $8.83 support holds, the macro structure remains bullish. Every dip toward this zone could represent an accumulation opportunity for patient traders.

Fundamental Catalysts Building Momentum

Beyond the charts, the Avalanche ecosystem is firing on all cylinders. The network continues expanding its Subnet framework, which is crucial for institutional adoption. More importantly, the implementation of Avalanche Warp Messaging (AWM) is solving real infrastructure problems by improving cross-chain interoperability.

These aren’t cosmetic updates—they’re fundamental improvements that position Avalanche as a serious contender for Web3 infrastructure. Institutions are watching, and the technical upgrades provide solid backing for the long-term thesis.

The Trading Setup

For those considering accumulation, the $8.83 - $13.02 zone represents an optimal entry corridor based on macro indicators and structural integrity. This is a high-conviction, patient play where volatility is expected but the risk-reward ratio heavily favors the bulls.

The bottom line: AVAX’s double bottom formation combined with fundamental progress suggests the smart money is positioning for the next leg higher.