Based on data from the weekly price chart, Bitcoin is witnessing a significant loss of over 6% following recent widespread market liquidations. Notably, the premier cryptocurrency has taken on a consolidatory stance in the past day, as if to lend credence to growing hopes of some price recovery. However, a recent on-chain analysis points out that Bitcoin’s outward show of resilience might merely be theatrical and that the flagship cryptocurrency could be facing a dark future ahead.

Bitcoin Enters 30-Day Cumulative Realized Loss Phase Since October 2023

In a recent Quicktake post on CryptoQuant, crypto education and research group XWIN Research Japan dissects the present on-chain situation of Bitcoin, with the center of attraction being the Bitcoin Net Realized Profit/Loss metric, which shows the leading cryptocurrency has recorded a net realized loss on a 30-day basis for the first time since October 2023. 

However, the losses seen in 2023 were short-lived and rapidly retraced, unlike the current decline, which is broader and more persistent, suggesting a possible structural shift in market dynamics. At this moment, it appears that investors are less-interested in “buying the dip,” nor are they looking to “HODL” through the Bitcoin price action, and are more willing to accept losses.

For this reason, the market can be more plausibly described as being in a state of caution. It is, however, worth mentioning that the present phase does not necessarily precede a market crash. If anything, it reflects that Bitcoin may be entering a more volatile phase, independent of speculative frenzies.

Realized Profits Signal Late-Stage Of Bull Cycle 

XWIN Research further reinforces the hypotheses by referencing the trend in realized profits. According to the market experts, Realized Profits peaked in March 2024 at approximately 1.2 million BTC, and reduced slightly to 1.1 million in December 2024. 

As of July, 2025, realized profits had sharply dropped to 517,000 BTC, reflecting an increasing exit of profit-taking activity within the market. But this pales in comparison to the lower 331,000 BTC recorded in October. The analytics group explained that this contraction occurred despite a rise in prices, thus suggesting an absence of deep upside momentum.

The group further highlights that this is a telltale sign of a late-stage bull market, one which was seen in 2021-2022. In this period, realized profits slowly dropped before the Bitcoin price flipped bearish. More shockingly, the annual timeframe tells a similar story, with annual net realized profits contracting from 4.4 million BTC to 2.5 million BTC, just within October 2025 and early 2026. This is also similar to the phase that preceded the bear market of 2022.

In essence, Bitcoin is in a transitioning phase, from a mature bull phase to a volatile environment. As of this writing, the Bitcoin price stands at $89,462. 

Featured image from Pexels, chart from Tradingview

As the crypto market suffered a widespread decline, Aave (AAVE) prices dipped by nearly 10%, reaching a local bottom around $153. Presently, the altcoin is trading within a range of $155-$160, but an emerging chart pattern indicates an impending price breakout.

AAVE Falling Wedge Nears Explosion Point, $145 As Key Price Floor 

In an X post on January 23, popular market expert Ali Martinez shares an insightful analysis of the AAVEUSD 4-hour chart, showing the altcoin is approaching a critical market juncture. Notably, a key support zone of $144 sits at the base of a broader descending structure that has defined AAVE’s price action since last year. Martinez’s analysis shows that AAVE is trading within a falling wedge formation, characterized by a series of lower highs capped by a descending trendline and relatively stable support near the $145 region. This price formation often represents a period of consolidation following sustained downside pressure, as sellers gradually lose momentum while buyers defend a key floor.

For context, since topping out above the $350 level earlier in the cycle, AAVE has experienced a steady corrective move, with price stepping down through multiple horizontal levels near $240, $200, and $162. The loss of these zones shifted short-term momentum firmly in favor of sellers, making the current support range even more important. At present, AAVE is trading in the mid $150s, leaving limited room before a direct retest of the $144.93 support. However, this level has already acted as a demand zone multiple times during the current downtrend, reinforcing its significance. 

According to Martinez’s analysis, a clean break below $145 could force an accelerated downside move, with the next major support area set around $125. In that scenario, price acceptance below the wedge structure would likely confirm a continuation of the broader bearish trend. Conversely, holding the $145 support may provide the conditions for a technical rebound.

A successful defense of this level, combined with a break above the descending trendline, could allow AAVE to reclaim higher resistance zones around $162 and potentially $200 over time. While such a move would not immediately invalidate the larger corrective structure, it would suggest improving market balance and decreased selling pressure.

AAVE Price Overview

At press time, Aave trades at $156.99, reflecting a decline of 0.76% in the past 24 hours. Meanwhile, the daily trading volume is up by 6.07% and valued at $362.59 million. With price compressing toward the apex of the falling wedge, traders should expect increased volatility in the coming AAVE trading sessions. For now, the price moves at $144.93 as a pivotal inflection point for determining the next directional move. 

Featured image from Rootsttrap, chart from TradingView

Chainlink’s native token, LINK, continues to trade within a clearly defined price channel, reflecting a period of consolidation as the broader crypto market is yet to establish a clear market direction. Meanwhile, renowned analyst Ali Martinez provides some key insights on the LINK market, highlighting the potential price targets for the next breakout.

Chainlink In Compression Phase Between $12-$15 — What Next? 

In a recent X post, Martinez shares an analysis of the LINK 12-hour chart, which shows the altcoin has been range-bound between key support at $11.89 and resistance near $14.64, a structure that has remained intact over multiple trading sessions stretching back to 2025. This price behavior implies that neither bulls nor bears have been able to assert sustained control as each attempt to push higher has been capped near the upper boundary of the channel, while pullbacks have consistently found buyers around the $11.89 support zone. 

From a technical standpoint, the channel highlights a phase of consolidation following earlier volatility. Therefore, this structure may be laying the groundwork for a more decisive move once the price escapes the current boundaries. 

The $14.64 resistance level remains the key hurdle for bullish continuation. A confirmed breakout above this zone, ideally supported by rising volume, could reignite upside momentum with potential targets set at $17.00. On the downside, a loss of the $11.89 support could change the technical outlook, exposing LINK to deeper retracements, with potential around $10.00. For now, however, this support has held firm, reinforcing the validity of the channel and keeping bearish momentum in check.

LINK Market Overview

At press time, LINK trades at $12.21, reflecting a major loss of 10.95% in the last seven days amid a general market downturn. However, the monthly loss of just 1.09% indicates that downside momentum remains relatively contained, suggesting that recent selling pressure may be corrective rather than structural and that many new market entrants could soon return to profit if prices stabilize.

In other news, Chainlink has completed the acquisition of Atlas, the order flow auction protocol developed by FastLane. According to the blockchain team, this move strengthens Chainlink’s value capture stack by expanding the reach of Chainlink SVR into the new DeFi ecosystem, thereby helping improve MEV recapture.  With a market cap of $8.65 billion, Chainlink is ranked as the 13th largest digital asset in the world.

In the last week, Bitcoin suffered another correction wave with prices dropping to around $88,000 as the crypto market continues to face a weak investor appetite. While the premier cryptocurrency has experienced some slight relief, an approaching monthly close indicates the market is at a critical juncture that could define its price direction for February.

Bitcoin Market Weighs Rebalance Or Complete Breakdown

According to seasoned analyst KillaXBT, Bitcoin is heading into a pivotal monthly close next week, as recent price action suggests the market is approaching an inflection point. Notably, after sweeping external highs near $94,600 earlier in the month, BTC has since faced firm rejection, pushing price back toward the lower end of its recent range between $88,000-$90,000.

The rejection from these highs resulted in pronounced upper wicks on higher timeframes, a structure that often signals aggressive selling pressure. However, KillaXBT explains that such wicks are frequently partially or fully retraced, due to liquidity. With a full trading week still remaining before the monthly candle closes, the market analyst postulates that there are three primary scenarios that could determine price direction for February.

Firstly, Bitcoin could rise into the end of the month, allowing for a stronger monthly close. Under this scenario, February could begin with price forming the upper portion of the current wick, potentially revisiting the low-to-mid $90,000s before rolling over later in the month toward the $83,800 region.

In the second scenario, Bitcoin closes the month near current levels around $89,000, followed by an early-February move to hunt liquidity in the $91,000–$92,000 range before resuming a downward trend. Interestingly, both scenarios align with the idea that the market may first move higher to rebalance liquidity before resolving lower.

The third scenario presents a more severe outcome that aligns with a potential market breakdown. In this case, KillaXBT forecasts Bitcoin could retrace below the weekly and monthly open at $87,664 and close beneath this level before February. The analyst describes this scenario as “violently bearish”, as it increases the probability of a rapid move towards a lower support in the new month.

Notably, KillaXBT favors the first two scenarios, as the present sentiment being heavily bearish indicates that most investors are least expecting a move to the higher side. However, the analyst also emphasizes that the loss of $83,800 support in any scenario would significantly alter the outlook for any remaining long exposure.

Bitcoin Price Overview

At press time, Bitcoin trades at $89,645 following a minor 1.4% gain in the last day.

Coinbase CEO Brian Armstrong has denied existing tension between the exchange and the White House over the content of the crypto market structure bill, i.e., the Digital Asset Market Clarity Act. This development follows a series of contentious moments surrounding the highly anticipated crypto market structure bill, beginning with Armstrong raising concerns over its provisions, which the crypto exchange would rather protest than support.

Crypto Market Bill Still On, Bank Negotiations Ongoing — Coinbase CEO

In a surprising move on January 15, Armstrong announced a public support withdrawal for the Clarity Act. The key crypto figure argued that the current content of proposed legislation was introducing a regulatory structure that would produce a net negative effect on the crypto industry. In particular, Armstrong raised alarm on opposition to stablecoin yield sharing, among other issues, before emphasizing the preference of “no bill than a bad bill.”

Following this event, journalist Eleanor Terrett reported that the White House became furious over Armstrong and Coinbase’s public criticism, which they described as a “rug pull”. In particular, she claimed the Donald Trump-led administration has threatened to withdraw support for the Clarity Act if the crypto exchange fails to return to the negotiation table with satisfactory solutions to the stablecoin yield dilemma. 

However, Armstrong has come out to counter this narrative of a potential fallout between Coinbase and the US government. Rather, Armstrong stated the crypto exchange has only directed to negotiate a deal with banks on how stablecoin yield sharing can fit with the present financial system. 

Notably, the US banking industry has pushed against allowing stablecoin operators to share yield with users, which they project could potentially cause a deposit flight even at interest rates as low as 5%. Armstrong states Coinbase is now exploring a potential deal that could benefit all entities involved following what he described as a “super constructive” meeting with the White House, thereby countering the report of escalating tensions.

Terrett Fires Back At Coinbase Boss

In another X post, Terrett hit back at the Coinbase CEO, claiming her initial report remains accurate. The renowned journalist explains that Armstrong’s rebuttal on supports her earlier claim that the White House has now hinged their support of the Clarity Act to Coinbase’s ability to secure a deal with the banks on the implementation of stablecoin yield sharing.

For context, the Clarity Act is designed to clearly define how digital assets are regulated in the United States and which agencies oversee different parts of the crypto market. It is a crucial piece of legislation, the approval of which is expected to improve investor protection and encourage adoption.

Bitcoin recently failed to overcome the $97,000 resistance following its price surge seen in mid-January. At the moment, the leading cryptocurrency has taken on a state of inertia, with no significant movement in either direction seen. However, an investigation of on-chain dynamics has recently revealed that trouble might be looming for the flagship cryptocurrency.

Sudden Inflows: Caution Or Opportunity?

In a QuickTake post on CryptoQuant, key opinion leader CryptoZeno shares a potentially foreboding observation on Bitcoin’s market dynamics, saying the premier cryptocurrency could be facing a risk of distribution in the near-term.

This conjecture is based on the Bitcoin: Exchange Inflow (Total) – All Exchanges metric, which serves the basic function of tracking the total amount of BTC transferred into centralized exchanges over a certain period.  CryptoZeno highlights in the post that exchange inflows have seen sharp surges through Bitcoin’s most-recent trading sessions, which represent one of the most significant spikes seen in the month of January.

Typically, large inflows of BTC into exchanges act as a telltale sign that investors are preparing to distribute their holdings. This is contrary to any inclination towards long-term holding. Interestingly, the sign of distribution-readiness is more typical if the event were to occur just after a strong advance of the BTC price. 

Also citing historical occurrences, CryptoZeno explains that such behavior, where BTC holders increasingly send their tokens to exchanges, suggests that investors are venturing out of Bitcoin and to more “liquid venues.” Expectedly, such a massive dispersal of their holdings would translate into price as increased sell-side pressure, especially in the short-term. 

Notably, the analyst makes it clear that inflows alone do not tell a sure story of an immediate reversal. More accurately, spikes in exchange inflows often come before heightened volatility periods or corrective price action.

Analyst Highlights Mid- To Large-Size Bands As Main BTC ‘Movers’

CryptoZeno provides more context by merging the Spent Output Value Bands with the Exchange Inflow metric. This shows which investor cohort was more involved in creating the distribution signal seen. On inspection of the blended metric, it becomes apparent that the spike in exchange inflows was largely induced by mid-to-large size bands (10-100 BTC, and 100-1,000BTC).

These size bands, according to the crypto expert, are associated with whales, long-term investors who are repositioning, or even ETFs. These investor classes do not merely act without strategic reasons. As a result, their activity is usually more important compared to retail activity.

A simultaneous increment to exchange inflows, alongside large investor distribution, is another sign that the Bitcoin market is on the brink of a fragile phase. In the event that inflows remain high as price struggles to reclaim past highs, the world’s leading cryptocurrency could be entering a phase of trouble, as it would suggest the predominance of supply over demand.

As of this writing, Bitcoin is worth $95,250, recording almost no growth since the past day.

The XRP market recorded a net negative performance in the past week, resulting in a minor 1% price decline. A very volatile market movement saw the altcoin trade as high as $2.17 before returning below the $2.10 resistance. As XRP investors eagerly await the next market move, recent on-chain data shows evidence of another impending price breakout.

XRP Negative Funding Rates Fuel Positive Market Bias

In exchange activity, funding rates refer to periodic payment mechanisms used in perpetual futures markets to keep the futures price aligned with the spot price. A positive funding rate suggests that long positions are overcrowded, which sees these long traders pay premiums to short traders to maintain their existing positions, thereby incentivizing and eventually pulling the futures price back toward the spot market.

According to market analyst PelinayPA, whenever the XRP funding rates have turned positive, there is usually an ensuing price consolidation or sharp correction. Such price movement can be attributed to the rising cost of maintaining these long positions and also the strong potential of a long squeeze, eventually causing a fall in market demand. 

On the other hand, sudden negative spikes in funding fates, especially when accompanied by a corresponding fall in funding rate, SMAs have resulted in the historical formation of a price bottom. Despite the pessimistic sentiment associated with negative funding rates, there is always a subsequent short-term price rebound. 

PelinayPA explains the XRP market sits in the latter situation as the funding rate is presently around -0.00323, while both SMA50 and SMA30 are heading downwards. Clearly, there is little optimism as short positions account for most of the existing leverage in the market. However, based on historical data, the chances of a price pullback or sustained selling pressure are presently low. 

Rather, the current funding data suggest the market is gathering momentum for a potential positive price breakout after a period of consolidation. However, PelinayPA warns that this signal does not indicate a major price rally, but only a stronger potential for an upward price move.

XRP Price Overview

At the time of writing, XRP trades at $2.06, reflecting losses of 0.24% and 0.99% in the past one and seven days, respectively. However, the monthly chart reports an impressive price gain of 13.45%, indicating that a significant portion of new market entrants are sitting in profits.  Despite these gains, XRP remains significantly below the cycle’s all-time high at $3.5. To decisively establish any form of bullish intent, XRP bulls must reclaim the immediate resistance at $2.10 before setting sights on future targets, including $2.60 and $3.00. 

Bitcoin prices continue to consolidate within the $95,000 zone following the pullback in the latter part of the past week. The premier cryptocurrency is experiencing a bullish January performance marked by a net gain of 11.42% since the new year commenced. However, the effects of the extended price correction from Q4 2025 linger. Using recent on-chain data, a market analyst with the username MorenoDV_ has identified certain holder cohorts who are still experiencing extreme psychological stress that could impact future price trajectory.

Bitcoin Market Risk Redistribution Ongoing – Here’s Why

In a QuickTake post on January 17, MorenoDV_ postulates that the Bitcoin bull cycle remains on despite the negative events of Q4 2025. Notably, the crypto market leader experienced a heavy 33% price correction after hitting its current all-time high ($126,198) in early October.

Although Bitcoin has recorded some modest price recovery in the past month, significant expectations of a bear market remain, driven by a diminished market demand and failure to reclaim key technical levels such as the 365-day MA. Using the data from the Realized Price by UTXO Age Bands, MorenoDV explains that the Bitcoin market is actively redistributing risk. This positive development counters the bearish narrative of a market cycle ending.

With the present spot price around $95,583, the CryptoQuant metric shows that psychological stress is unevenly distributed among Bitcoin holders. Notably, short-term holders, i.e., 1w-1m and 1m-3m cohorts, have realized prices, i.e., $89,255 and $93,504, respectively, below the spot price. This data suggests that these classes of investors are in profit and are experiencing low market pressure, which helps keep fear at bay.

However, mid-term holders of 3m-6m and long-term holders of 6m-12m have realized prices of $114,808, and $100,748 both of which are significantly above the present spot price. However,  both holder cohorts have chosen to bear the discomfort by absorbing losses rather than initiating an aggressive redistribution. 

Therefore, as the spot price rises towards the realized price levels of these stressed cohorts, losses are expected to significantly reduce, eventually easing these pressures on these classes of holders and balancing the market risk. This market development only occurs if the 3m-6m and 6m-12m continue to interpret the present market drawdown as a mere cyclical discomfort rather than a change in market structure. Therefore, there is a need for a sustained bullish narrative and constructive price behavior to keep these investors from seeking a market exit.

Bitcoin Price Overview

At press time, Bitcoin trades at $95,265, reflecting a modest 5.3% gain in the last week. 

The Nigerian Securities and Exchange Commission (SEC) is maintaining an intense focus on the local cryptocurrency industry, as indicated by recent developments. While introducing minimum capital requirements for previously unregulated virtual asset service providers (VASPs), the securities regulator has also formed an alliance with the Nigeria Police Force (NPF) against cryptocurrency fraud, among other illegal operations.

Nigerian SEC Looks To Improve Crypto Investors’ Protection

According to local media Voice of Nigeria, the SEC is ramping up efforts aimed at investor protection and transparent market operations in the crypto ecosystem. In a recent meeting with the NPF, the Commission’s Director-General (DG), Dr. Emomotimi Agama, communicated to the Inspector General of Police (IGP), Kayode Egbetokun, concerns over malicious actors in the financial markets who exploit investors’ trust for personal gains. 

Dr. Agama said:

They cloak their deceit in the glamorous but misunderstood language of cryptocurrency and forex trading. They target the vulnerable, the optimistic, and the simply unsuspecting, leaving behind a trail of shattered lives, depleted pensions, and broken trust. This is not just a financial crime; it is a social menace that erodes public confidence in our entire financial system.

Currently, there is a gap, a seam between identification and enforcement that these scammers exploit. Today, we aim to close that gap permanently.

In particular, the SEC DG is proposing the formation of a specialized SEC-NPF team with members who bring understanding of the financial principles and operations and the tactical intelligence to curb these investment frauds and protect the Nigerian cyberspace. The IGP approved the collaboration request while also stating a strong commitment to help the SEC achieve its aims.

Crypto Fraud In Nigeria

Notably, Nigerians have been victims of several cryptocurrency investment scams in the past few years. The most prominent of these is the Crypto Bridge Exchange (CBEX) platform, which crashed in April 2025, losing over N1.3 trillion ($916 million) in user funds. 

The Nigerian SEC is strongly committed to reducing such menace as shown by the recent collaboration with the NPF alongside other measures such as a revised minimum capital requirements for VASPs and a published list of all identified fraudulent crypto and financial investment businesses. 

Notably, Nigeria remains one of the fastest-growing crypto hubs globally. According to data from TripleA, approximately 10.34% of Nigeria’s population, i.e., 22 million people, hold one digital asset or the other, therefore indicating the need for an effective regulatory oversight and protection system. 

Nigeria, Africa’s most populous nation, is paying vast attention to its rapidly developing cryptocurrency industry marked by a string of new regulations. In the latest development, the Nigerian Securities and Exchange Commission (SEC) has shared a revised minimum capital for all regulated market entities, including operators in the digital asset market.

Nigerian Regulator Hikes Minimum Capital For Crypto Exchanges By $1.05M

On January 16, 2026, the Nigerian SEC released a circular communicating changes in the minimum capital (MC) requirements for major financial entities, namely: core and non-core capital market operators, market infrastructure institutions, capital market consultants, financial technology (FinTech) operators, virtual asset service providers (VASPs), and commodity market intermediaries. 

The securities regulator has explained that the revised MC framework is to boost operational resilience, align capital adequacy, promote market stability, and support innovation in nascent market segments such as the cryptocurrency industry. 

In relation to VASPs, the minimum capital for digital asset exchanges (DAX) and digital asset custodians has been increased from N500 million ($352,000) to N2 billion ($1.4 million).  Meanwhile, all digital assets offering platforms (DAOP) responsible for issuance and primary sale of digital assets to the public are expected to meet a capital threshold of N1 billion ($704,111). 

Notably, the Nigerian SEC’s new circular expands its recognition of multiple VASPs that had been operating in a regulatory void. These include the ancillary virtual assets service providers (AVASPs) who provide auxiliary services such as blockchain analytics tools, etc who are now mandated to operate with a minimum capital of N300 million ($211,200).

Under the new regime, the base capital requirements for both digital assets intermediary (DAI) and digital assets platform operators (DAPO) have also been placed at N500 million ($352,000). In new additions, real-world assets tokenization and offering platforms (RATOP) now have a set minimum capital requirement of N1billion ($704,111). 

According to the SEC, all concerned entities are advised to comply with the new regime on or before June 30, 2027, as failure to do so will result in penalties, including suspension or withdrawal of registration, as determined by the Commission.

Nigeria Government Increases Focus On Crypto Industry

Aside from the SEC’s recent circular, other developments indicate that the Nigerian government is increasing its participation in the cryptocurrency market. 

Notably, the new Nigeria Tax Administration Act (2025) now requires all digital asset activity to be linked to Tax Identification Numbers (TIN) and National Identification Numbers (NIN), effectively capturing the nascent industry as a new tax base.

These recent measures follow a recent partnership by the SEC and the Nigerian Police Force (NPF) focused on cracking down on Ponzi scheme operators and other similar scams.

Over the week, Ethereum struggled to sustain any significant move to the upside. Although the second-largest cryptocurrency reclaimed the $3,300 price level, it could not break above $3,400 to continue its path towards higher price levels. As it stands, it appears that the Ether token is taking on a short-term bearish structure. However, an on-chain evaluation has recently been put out, which suggests that market participants might be gearing up for a significant move in the near-term.

Ethereum Futures Activity Reaches Monthly High Following Market Inactivity

In a recent QuickTake post on the CryptoQuant platform, analytics group Arab Chain reveals that there has recently been a spike in futures trading activity on the Binance derivatives market. This revelation is based on the Binance: ETH Futures Daily Volume metric, which monitors the total value of Ethereum futures contracts being traded on Binance each day, hence reflecting market activity, trader participation, and potential leverage exposure.

The latest reading of the metric has highlighted a major shift, with trading volume climbing as high as $21.7 billion. According to Arab Chain, this reading marks the highest level since mid-December, reflecting that strong momentum has returned to the futures market.

Notably, the spike in futures trading volume was preceded by a period of relative decline in the second half of December. This event coincides with a period of price stability, alongside a tapering risk appetite among traders. Interestingly, institutional investors also contributed prevalent aversion to risk.  Arab Chain explains that the decline is a typical sign that market participants want to “wait and see,” instead of speculatively opening large positions.

However, the present scenario — where futures volume surged — paints an opposing story. As the futures trading volume reflects levels above its mid-December high, it becomes apparent that interest among Ethereum traders is being rekindled. This is because increasing futures volume “is typically associated with higher leverage usage, hedging activity, and speculative positioning” — a line up which indicates that the market is preparing for significant movement.

The reason for this spike could also be attributed to traders who are reacting to key technical levels or shifting expectations around near-term price action of a potential trend reversal. In the grand scheme, however, the Ethereum price reacts to this activity, depending on the alignment of spot demand with derivatives activity. Till such a definite sign comes up, the market stands at a point of uncertainty.

ETH Price Overview

As of this writing, Ethereum stands at a price of $3,292, reflecting no real growth since the past day.

AVAX, the native token of the Avalanche protocol, is ready for a potential price breakout following another week of significant mixed price action. In line with the widespread crypto market uplift, the altcoin had initially surged as high as $14.85 before retracing below the $13.50 price. According to analyst Ali Martinez, AVAX now lies at another critical price juncture, with the next price move likely to determine its short-term trend.

Here’s Why AVAX Must Clear $14.83 Resistance 

In an X post on January 16, Martinez shares an insightful analysis of the AVAX 12-hour trading chart, identifying a key price zone and an important chart formation. According to the presented technical review, AVAX’s recent rejection around $14.85 can be attributed to heavy resistance in this region. Most notably, the altcoin has struggled to break past this $14.83 price barrier thrice in the last month, indicating a significant willingness among investors to sell when the price approaches this zone.  This could be driven by a general view of such a price point as a good profit-taking zone or expectation of a price decline based on historical data.

It’s worth noting that Martinez’s analysis also shows that AVAX price movement has formed an inverse head and shoulders pattern, thereby favoring an imminent upside breakout. For context, the inverse H&S formation is a bullish pattern that signals a potential trend reversal. As seen above, it consists of three troughs: the left shoulder, where price declines, then rebounds; the head, a deeper decline to around $11.26 followed by a recovery, and the right shoulder, a higher low ($13.75) that fails to reach the depth of the head.

All rebound highs are connected by a resistance line ($14.83) known as the neckline. And a bullish breakout indicates strengthening buying pressure. Therefore, Martinez explains that AVAX must push past this barrier in a decisive manner to trigger a bullish breakout towards $17.59 as an initial price target. With sustained buying pressure, the analyst predicts a further rise to $18.41, representing a potential 35% gain on present market prices.

AVAX Market Overview

At the time of writing, AVAX trades at. $13.61 reflecting minor losses 1.19% and 1.34%in the past one and seven days, respectively. Meanwhile, the monthly chart reports a market gain of 14.67%, indicating the market could indeed be experiencing a trend reversal following the net negative Q4 2025 performance.