Cryptoasset Avax finds itself in a predicament, with resistance at $26 impeding its progress, while a potential drop to $20 looms.

In the cryptocurrency market, Avalanche (AVAX) is currently experiencing a 1.2% decline over the past 24 hours, with the immediate support for AVAX holding steady at $23.23. The digital asset is currently trading at $23.78.

The broader chart indicates potential downside for AVAX until around $20.00. If the present support at $23.23 fails, the next significant level for AVAX is at $20.00. However, it's worth noting that in case the momentum declines further, the bottom line at around $16.00 may become a new long-term support for AVAX.

The channel pattern, which has guided AVAX's price action for months, has tops near $27.00 and bottoms trending closer to $16.00. AVAX has shown repeated rejections at the $26.50 mark, suggesting a strong resistance level. Concentrated selling pressure is present at this level, and possible contributors could include large crypto hedge funds, institutional investors, or activist traders executing short-term profit-taking or stop-loss triggers.

Traders are observing whether the momentum will be biased towards a move down to $20.00 or if there will be another effort to break the resistance at $26.50. The immediate resistance for AVAX is at $24.16.

It's important to note that the $26.50 level is a strong resistance for AVAX, with the current positioning suggesting that if downward pressure continues, AVAX may revisit $20.00. If the support at $23.23 holds, however, there may be potential for AVAX to rebound.

The $16.00 level, if reached, could potentially offer a long-term support for AVAX, providing a floor for any further declines. As always, it's crucial for investors to conduct their own research and consider their risk tolerance when making decisions in the cryptocurrency market.

Cryptoasset Avax finds itself in a predicament, with resistance at $26 impeding its progress, while a potential drop to $20 looms.