AVAX crypto forming a bullish Double Bottom pattern at key support

Avalanche is showing early signs of a bullish reversal after establishing a potential double bottom formation at a critical support zone. If confirmed, this pattern could trigger a move toward $41.80.

Avalanche (AVAX) is currently trading within a high time frame support region that has historically served as a major pivot zone. Recent price action suggests the development of a double bottom structure — a bullish reversal pattern that may shift the prevailing bearish trend into a more optimistic trajectory. With additional confluence from the point of control and Fibonacci levels, the setup signals a possible change in market direction.

Key technical points

• Double Bottom at Key Support: Pattern forming at a high time frame demand zone.
• POC Confluence: Support aligns with volume profile point of control.
• Upside Target: $41.80 — near the 0.618 Fibonacci and value area high.

The double bottom pattern is beginning to take shape as AVAX holds above a well-established support region. This area also coincides with the point of control from the visible range volume profile, reinforcing its significance. A double bottom in this context represents a shift from prolonged selling pressure to potential accumulation.

The bullish reversal will be validated only once the local high, the neckline of the pattern, is taken out. Doing so would not only activate the double bottom but also mark the first higher high, effectively transitioning AVAX into a bullish market structure on higher time frames.

A confirmed breakout would open the door for a rally toward the value area high, which coincides with the 0.618 Fibonacci retracement level. This places the next technical target at approximately $41.80. The price reaction at this resistance zone will be critical in determining whether AVAX continues into a longer-term uptrend.

Current volume remains subdued, which is typical in the early stages of reversal patterns. What’s crucial is a volume influx following the breakout above the local high. A sharp increase in buy-side volume would give legitimacy to the breakout and could accelerate the move toward $41.80 and beyond.

What to expect in the coming price action

If the double bottom holds and AVAX breaks above the local high with strong volume, the path toward $41.80 becomes highly probable. Traders should watch for a decisive move and confirmation via volume to validate the bullish breakout scenario.