The crypto market experienced a notable pullback yesterday, with many assets retreating to lower levels. Avalanche (AVAX) suffered a 15% decline from its recent local top of $28.01.

This retracement has caught the eye of analysts and investors, who now view it as a strategic entry point for the asset. AVAX is currently testing a key support level that, if respected, could pave the best way for further gains. Analysts suggest that this level is crucial for maintaining the uptrend and potentially resulting in more upside for the Layer-1 blockchain. 

If the support holds, it could signal a bullish continuation, with the worth possibly retesting previous highs and moving beyond. Nonetheless, the asset might even see further declines or sideways movement if the support fails. The approaching days shall be critical in determining whether AVAX can capitalize on this chance and resume its upward momentum.

AVAX Testing Crucial Demand

Avalanche is testing crucial demand at $23, placing it in a key response zone that might trigger a big price impulse in the approaching weeks. Each traders and investors are closely watching this level, which represents a pivotal point for AVAX’s next move. 

Top analyst and investor Posty recently shared his evaluation on X, highlighting the importance of this $23 retest. He suggests that this level offers a superb entry point for those trying to capitalize on a possible upside.

Posty also notes that for individuals who prefer a more conservative approach, waiting for an entry above $32 is also a wise move, providing additional confirmation of a bullish trend.

If this retest holds, the worth could see a robust upward movement, with the potential for significant gains. Historically, Avalanche has shown the flexibility to rebound aggressively after such corrections, resulting in rapid price increases. 

This potential for a bullish breakout has generated considerable interest as investors seek to position themselves ahead of the subsequent market move. The approaching days shall be crucial in determining whether the worth can maintain its bullish structure and capitalize on this chance to push toward higher prices.

$32 After Testing Support? 

Avalanche is currently trading at $24.54 after successfully tagging and holding its 4-hour 200 moving average, a key support level that the asset lost in July but has now reclaimed and tested over the past week. 

This moving average is a vital indicator of price strength and has historically supported AVAX. The successful retest of this level signals a possible continuation of the bullish trend, but the worth needs to keep up its position above this support to sustain upward momentum.

For the worth to proceed its upward trajectory, it must hold above this critical 4-hour 200 moving average and challenge the local top at $28.01. Breaking past this level would confirm the bullish continuation and may lead to further gains. 

Nonetheless, if AVAX fails to keep up its support on the 4-hour 200 moving average, the subsequent logical demand zone to check can be around $22.8. This level would likely function the subsequent line of defense for bulls, making it a key area to look at within the event of a price pullback.