AVAX Rebounds Amid Trump-Musk Clash as Bullish Momentum Builds

The crypto market saw renewed volatility on Thursday after a dramatic social media feud between U.S. President Donald Trump and Tesla CEO Elon Musk. The argument, centered on the U.S. national debt, escalated with Musk endorsing Trump’s impeachment and alleging links to the Epstein files. The clash sent shockwaves through digital asset markets, with Avalanche’s AVAX among the hardest hit.

AVAX dropped sharply from $20.14 to $18.48, marking an 8.14% decline as trading volume spiked to 3.65 million units. However, the token rebounded swiftly, climbing 6% to $19.65 and recapturing nearly 58% of its losses. The price action has since established a bullish ascending channel, with resistance observed at $19.76.

CoinDesk Research indicates consistent higher lows over the past 14 hours, signaling growing buying momentum. Support has formed strongly between $18.48 and $18.88, further reinforcing a bullish recovery narrative. Volume surges at 45,299 and 64,948 units closely matched price jumps, culminating in a brief push to $19.76 — a local high that suggests strong short-term trader interest.

Despite a 1% daily loss, AVAX outperformed the broader market, as the CoinDesk 20 index fell 0.85%. If current sentiment holds, AVAX could test the psychological $20.00 barrier, a key level for potential breakout confirmation. Price support between $19.53 and $19.55 appears firm, providing a critical base for further upside.

Investors now watch closely as Avalanche navigates this recovery phase, with technicals favoring a continued upward trajectory — assuming market sentiment stabilizes after the Trump-Musk turmoil. The coming sessions will be crucial in determining whether AVAX can reclaim higher ground or face renewed pressure.