After an 8% rise, Avalanche (AVAX) faced a setback, with its price dropping over 3% in the last 24 hours, now trading at $27.16. Despite this decline, 50% of Avalanche holders remain in profit, suggesting a potential turnaround. Analyst Captain Faibik noted that AVAX broke above a bullish falling wedge pattern, which emerged in November 2023, indicating the current dip might be a retest of support.

On-chain data shows increased weighted sentiment and social volume for Avalanche, reflecting growing bullish interest. However, the fear and greed index is at 71%, signaling a "greed" position that often precedes price corrections.

Avalanche's technical indicators support a possible recovery, with the MACD showing bullish momentum and the Chaikin Money Flow indicating positive market conditions. If AVAX successfully tests support, it could aim for $32, potentially reaching March highs thereafter.