- With a loss of 5.82% in the last day and more than 26.60% during the previous week, AVAX is presently trading at $35.45, suggesting significant bearish trends.
- Significant declines in Avalanche network smart contract activity suggest a pause in innovation, which further dims market prospects.
Avalanche (AVAX) is one of the altcoins suffering the most from the current bear market in the cryptocurrency market. Even with few rallies, investor mood and wider market indicators point to a difficult path ahead for AVAX.
Market Trends and AVAX Short-Term Prospects
Based on data from CoinGecko, Avalanche is currently trading at about $35.45, indicating a significant decrease of 5.82% over the previous day. The cryptocurrency has dropped more than 26.60% in the last week, indicating a very negative prognosis for the market.
This drop coincides with more extensive corrections and a weak rebound that haven’t given investors or market analysts any reason for optimism.
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A major element aggravating the declining trend is the emergence on AVAX’s chart of the first Death Cross in almost a year.
This technical pattern, which has historically been a negative indicator for traders, indicates probable further drops when the short-term 50-day Exponential Moving Average (EMA) crosses below the long-term 200-day EMA.
According to ETHNews, there has been a noticeable decline in the number of smart contract executions, which is adding to the unfavorable feeling.
This decrease suggests that network advancements on Avalanche have come to a major stop, which may discourage investors and result in a decline in the value and utility of the network.
Estimated Price Changes
Analysts are predicting a possible decline to $27 in light of these circumstances. The Average Directional Index (ADX), which shows that the current decline is intensifying, supports this bearish prediction.
If AVAX is unable to maintain the crucial support level around $33, a decline to $29 appears probable; if negative trends continue, $27 is the next target.
But there is still hope for Avalanche. Broader market indicators turning bullish suggest that AVAX will likely break through the crucial resistance level around $44, which would contradict the prevalent bearish narrative.
A move of this magnitude would be critical in reversing the present market’s negative trend and maybe pushing prices upward.