Category: AVAXUSDT

During the recent weekend, Avalanche (AVAX) witnessed a significant surge in selling pressure, resulting in a bearish breakout. As a consequence, the price of AVAX dipped close to a multi-month low of $13.8.

However, on the 24-hour chart, the altcoin displayed a slight upward movement, showing some appreciation. On the other hand, the weekly chart depicted lacklustre performance for AVAX.

The technical outlook for Avalanche remains bearish, as both demand and accumulation levels have remained low. The price action of AVAX has been influenced by the undecided nature of Bitcoin (BTC), which recently re-entered the $27,000 range.

This has caused other altcoins, including AVAX, to exhibit uncertainty on their respective charts. The overhead resistance level for AVAX holds significant importance, as surpassing this level could trigger a rally for the altcoin.

Conversely, if sellers exert further pressure, AVAX may break its consolidation and fall below its immediate support level, thereby strengthening the bearish sentiment.

Broader market strength is necessary for AVAX to reclaim its overhead ceiling. The decline in the market capitalization of AVAX indicates a decrease in buying strength at the current time.

Avalanche Price Analysis: One-Day Chart

At the time of writing, AVAX was priced at $14.70. It is currently trading in close proximity to its immediate resistance level of $15. A breakthrough above $15 has the potential to propel the altcoin towards $15.80 and ultimately $16.

The involvement of buyers in the market is crucial to generate demand and facilitate AVAX’s upward price movement. On the downside, if AVAX fails to sustain its current price level, it may find support at $14 before potentially trading below that level. The recent trading session showed a decline in the amount of AVAX traded, indicating the dominance of sellers in the market.

Technical Analysis

Throughout May and part of April, AVAX experienced consistently low buying pressure, reflecting a limited demand for the altcoin. The Relative Strength Index (RSI) was below the 40-mark, indicating that sellers had a greater presence than buyers at the time of writing.

Furthermore, the AVAX price fell below the 20-Simple Moving Average (20-SMA) line, demonstrating that sellers were the driving force behind the price momentum in the market.

A significant move above the $15 price level would help AVAX surpass the 20-SMA line, suggesting a potential shift in momentum and possibly attracting more buying interest.

Although AVAX recently returned to the $14 price zone, there are no clear indications of buying strength according to technical indicators.

The Moving Average Convergence Divergence (MACD), provides insights into price momentum. It formed only one green histogram, which does not necessarily signify buy signals at this point.

The Bollinger Bands, which reflect price volatility and fluctuations, have remained wide, indicating that the possibility of price fluctuations cannot be ruled out in the upcoming trading sessions.

Avalanche (AVAX) has experienced a bearish week with several price floors being lost. However, in the last 24 hours, AVAX has moved up by 1.5%, suggesting a sideways trading session. The technical analysis indicates that bears still have control over AVAX, with decreased demand and accumulation.

Buyers have lost interest due to previous bearish influence. Bitcoin’s price has been indecisive, losing the $27,000 price zone. Major altcoins have followed this trend. Although BTC has shown some recovery, overall market weakness has impacted buyer sentiment in the altcoin market.

AVAX is currently trading near a crucial support level, and further selling pressure could lead to significant value loss in upcoming trading sessions. Buyers need to intervene for the price to initiate a recovery.

The market capitalization of AVAX has also declined, indicating increased selling strength on the chart.

Avalanche Price Analysis: One-Day Chart

At the time of writing, AVAX was priced at $15.40. Following a modest recovery, AVAX has surpassed the $15 threshold and is now positioned near its critical support level of $14. The altcoin faces resistance at the $16 mark, and if it manages to surpass this level, it could potentially reach $18 and subsequently $20.

Crossing $16 would signal increased strength for the bulls. Conversely, a decline from the current level would push the coin below $15 and eventually toward $14, strengthening the bears.

With a slight uptick in demand, AVAX may make an attempt to breach the $16 threshold. The trading volume for AVAX in the previous session was relatively low, indicating a reduced presence of buyers in the market.

Technical Analysis

Throughout this month, AVAX has lacked significant buying strength. Currently, the Relative Strength Index (RSI) is slightly above the 40-mark but below the half-line. Although there has been a slight increase in the RSI, sellers have been the driving force behind the price momentum in the market.

This aligns with the observation that the price of AVAX has fallen below the 20-Simple Moving Average line, indicating that sellers continue to drive the price momentum in the market.

Despite a slight price increase in the past 24 hours, AVAX still shows sell signals on the chart. The Moving Average Convergence Divergence (MACD), an indicator of price momentum and reversals, has formed red histograms, indicating sell signals for the altcoin. This suggests a potential price decline before a recovery.

The Bollinger Bands, which represent price volatility and potential fluctuations, have remained wide, indicating that AVAX can anticipate price changes in upcoming trading sessions.

The upper band serves as a price ceiling, aligning with the resistance level at $16.

Over the last few days, Avalanche has experienced significant losses, plunging by almost 20%. On a weekly timeframe, AVAX has lost 10% of its market value. Although the daily timeframe indicates that AVAX has made a slight upward movement on its chart, with an appreciation of 1.6%, the technical outlook for Avalanche remains bearish.

Buyers have been cautious about price movements while sellers have dominated the market, leading to a decrease in both demand and accumulation on the daily chart. In order for the Avalanche price to experience some relief, it needs to break above the $18 mark.

However, the $17 price level has acted as a supply zone for the altcoin. If bulls cannot defend the current price mark of the altcoin, the bears may take full control of the asset’s price.

Similar to other prominent altcoins, major market movers have been struggling to break their crucial resistance levels. The decline in AVAX’s market capitalization indicates a decrease in buying pressure in the market.

Avalanche Price Analysis: One-Day Chart

At the time of writing, AVAX was priced at $17.17. The immediate resistance for the altcoin was at $18, and if breached, could lead to a push towards $19, thereby strengthening the bulls.

However, if Avalanche continued to trade sideways, a fall below the $17 level was expected. In such a case, the next support level for the asset was $15.

The altcoin’s recovery was dependent on buyers stepping in to push its price above the $18 mark. The recent amount of AVAX traded was red, which suggested an increase in selling pressure in the market.

Technical Analysis

Over the past week, there has been a significant drop in demand for the altcoin, leading to a decline in its value. Despite efforts by bullish investors to regain buying strength, it is essential to surpass immediate resistance to make progress.

The Relative Strength Index indicates that sellers outnumber buyers, with the index below the 50-mark. Though there has been a minor upswing, the bearish influence continues to dominate.

Additionally, the AVAX price remains below the 20-Simple Moving Average, indicating that sellers are gaining momentum and steering the market’s price action.

In addition, further technical indicators suggest that bearish momentum is prevailing. The Moving Average Convergence Divergence indicator shows the price momentum and reversals in the market. On the one-day chart, red histograms have formed, indicating sell signals.

The Directional Movement Index determines the price direction, and currently, the -DI line (orange) is above the +DI line (blue), resulting in a negative DMI reading. The Average Directional Index (red) is above the 20-mark, indicating that the price momentum is gaining strength.