The AVAX price has been experiencing a correction phase, aiming to avoid any further decline below $30. The downtrend has resulted in a 50% decline, forming a bearish channel pattern on the daily chart. With the bullish sentiment growing among traders, the possibility of Avalanche reaching $100 in 2024 is becoming increasingly likely.

Double Bottom Formation and Channel Breakout

The AVAX price has managed to avoid a drop below $30, thanks to the high demand at lower levels. As the bullish slowdown in the top coins becomes evident, Avalanche is facing challenges in overcoming the constant rise in supply. During the 50% pullback phase, the altcoin price reverted from the $60 mark to test the $30 mark, indicating a possible double-bottom formation to reverse the bearish trend.

Technical Analysis

The MACD and signal line showcase an uptick, teasing a resurface above the zero line, and the intertwined lines suggest a bullish crossover. The daily RSI line also shows a bullish divergence in the daily chart, increasing the likelihood of a bullish turnaround.

Bullish Breakout or Bearish Trap?

With the increasing likelihood of a bullish breakout in Avalanche, sideliners are presented with an excellent entry point. If a breakout occurs, the uptrend could result in a jump to $50 or the 50% trend-based Fibonacci level. However, a crash under $30 might prove fatal and drop the market price to $20.

In conclusion, the AVAX price is facing a critical juncture, with a bullish breakout or a bearish trap on the horizon. As the market anticipates a bounce back, traders should closely monitor the price action to capitalize on the potential opportunities.