Avalanche (AVAX) Shows Signs of Recovery Amid Altcoin Resurgence
In recent months, altcoins have struggled to maintain their value, but signs of recovery have emerged, particularly for Avalanche (AVAX). As of February 20, 2026, AVAX gained momentum, with trading volume soaring by 25% to $248.87 million. The price was hovering around $9.25, moving towards a key descending trendline that had formed after a devastating crash in October. This downturn marked the beginning of a prolonged decline, with the support level at $7.29 proving crucial for bulls to defend. The pressing question for investors is whether the current momentum can break through the descending resistance that has thwarted previous recovery attempts.
Technical Indicators Point to Bullish Signals
The daily chart for AVAX reveals a bullish crossover in the MACD (Moving Average Convergence Divergence). As AVAX approached the trendline from the October crash, the histogram showed slight positivity, suggesting a potential shift in short-term momentum from bearish to bullish. However, it is important to note that the Relative Strength Index (RSI) remains below the 50 mark, despite climbing toward 42. This indicates while there is an improvement in momentum, it hasn’t yet triggered a fully bullish condition. With AVAX still positioned under key resistance levels, the impact of the bullish signals may be limited unless a breakout occurs.
Market Activity Indicates Growing Demand
Insights from CryptoQuant’s analysis reveal that both Spot Taker Buy Dominance and Futures Taker Buy Dominance remain elevated. This indicates a robust level of market participation, characterized by aggressive buying behavior. Such data points suggest a developing demand dynamic under the price action, showcasing that buyers are active rather than mere passive bidders. Despite this uptick in activity, AVAX has yet to decisively reclaim its descending resistance, indicating that while buyer aggression is evident, it hasn’t resulted in a structural change in price.
Navigating the Multi-Year Downtrend
Examining AVAX on a weekly chart reveals an ongoing multi-year downtrend that has served as macro resistance since 2021. Each substantial rally has stalled beneath this resistance level, meaning AVAX has remained in a bear market, as confirmed by the weekly RSI, which hovers around 31.78, and the MACD, which remains below zero with a slightly negative histogram. The broader market conditions remain bearish despite recent positive indicators on lower timeframes. A weekly close above the multi-year downtrend is essential to signal any potential shifts in this trend.
The Path Forward for AVAX
While current market data indicates that accumulation may be taking place beneath the price action, confirming a structural breakout is crucial for identifying a trend reversal. Elevated demand and significant trading volume reflect market interest, yet unless AVAX can decisively break through key resistance levels, its long-term trajectory remains uncertain. Investors and analysts will be closely watching for a weekly close above the multi-year downtrend; such a movement could mark a pivotal moment, shifting AVAX from a bear market to a potential bullish phase.
Final Thoughts on Avalanche’s Prospects
Despite some improvements in short-term momentum and increased market activity, Avalanche (AVAX) continues to navigate a challenging landscape defined by multi-year downtrends and bearish sentiment. The essential requirements for a trend reversal include a confirmed structural breakout and sustained momentum through key resistance levels. While the current indicators suggest the potential for recovery, the reality is that AVAX remains ensnared in a larger bearish framework until these conditions are met. For investors, staying informed and cautiously optimistic will be key as market dynamics evolve.
