- The cryptocurrency market is negative, and MACD and RSI imply Avalanche (AVAX) will continue to fall.
- The recent sharp spike in trading volume suggests increased market activity, possibly as traders respond to AVAX’s volatility and capitalize on price swings.
Bearish sentiment is pervasive and has affected a number of well-known digital currencies, including as Solana, Ethereum, Litecoin, Avalanche (AVAX), and XRP.
A big drop in the value of AVAX, which, as of the most recent CoinGecko data, is currently trading at about $37.53. This indicates a sharp decline of 24.92% over the previous week, despite a minor recovery of 3.04% in the last 24 hours.
Pricing and Technical Indicators for AVAX
Because Avalanche has been trading below the 100-day Moving Average, a technical indicator that frequently predicts long-term trends, its price motion is especially interesting. This movement below the average seems to be indicating a protracted negative phase for AVAX.
This perspective is supported by the 4-hour chart’s MACD (Moving Average Convergence Divergence) indicator, which shows a strong bearish signal while staying below the zero line and drifting lower on the histograms.
In addition, the 4-hour chart’s Relative Strength Index (RSI), which is also assessed, is circling the oversold area. This implies that although there may be a slight price retracement coming, the overall trend is still clearly negative.
The alligator indicator, another important tool, supports this analysis by displaying its lip and teeth crossed below its jaw, indicating a strengthening of the negative trend.
Market Dynamics and Upcoming Trends
Avalanche’s market dynamics show a significant increase in trading volume, which has increased by around 250% in the past day. This surge may be the result of traders taking advantage of the erratic price movements or setting themselves up for potential future changes.
AVAX’s next major resistance levels are $50 and $59.99, with $39.95 serving as the present support. AVAX’s price may drop to the next notable low at $27.53 if it breaches this support level.
Alternatively, there can be an attempt at an upward correction towards $50.80 if it stays above its current support. Should this level be successfully broken, the price may go in the direction of the greater resistance at $59.99.
On the other hand, as ETHNews has reported, Avalanche has previously experienced difficulties as a result of a decline in the number of smart contract deployers, which might erode developer confidence and hinder innovation on the platform.