- The vast majority of AVAX investors are still profitable despite recent swings, demonstrating their resiliency in the face of market turbulence.
- On AVAX’s chart, the emergence of a death Cross indicates the possibility of additional price drops.
Avalanche (AVAX) has had substantial price swings; as of right now, CoinMarketCap data indicates that the price of AVAX is roughly $34.41, indicating a slight increase of 0.42% over the previous day but a noteworthy decrease of 26.55% over the previous week.
Investor Insights and Market Sentiment
Since peaking at $65 on March 18, Avalanche has seen a significant decrease. 57.68% of AVAX investors are still profitable despite this, having purchased the cryptocurrency for less than its current market value at a lower price.
A level of protection against future declines was provided by the fact that only a small percentage of the investor base—roughly 6.10%—purchased at prices close to the present market value.
Transaction data indicates that overall market sentiment is neutral, with a minor negative inclination. The trading patterns, which don’t exhibit any appreciable variations in activity, especially among large transactions, reflect this neutrality.
This shows that actions in the futures markets, particularly long liquidations, have been the driving force behind the recent selling pressure rather than major holders selling off their positions.
Impact of the Avalanche Derivative Market
A subsequent analysis shows that the futures market had a significant impact on the current price patterns.
In particular, on April 11 and 12, there was a significant increase in long liquidations totaling $10.8 million, surpassing the amount of short liquidations, which made up around half a million dollars. These changes demonstrate how speculative trading affects AVAX price. To learn more about this development, see the YouTube video below.
AVAX Price Recovery and Technical Analysis
AVAX’s price trajectory finished a substantial dip on March 18, the beginning of a decline, with a five-wave impulse. The Fibonacci retracement level of 0.618 provided support for this and suggested a possible endpoint for this corrective phase.
Recent events on the technical charts, including a notable Death Cross where the 50-day EMA crosses below the 200-day EMA, indicate potential further drops. This pattern, which has not been seen in about a year, usually portends negative trends, as previously reported by ETHNews.
Notwithstanding these difficulties, a bounce back from current levels is anticipated, which may potentially mark the start of a fresh uptrend or, at the absolute least, a corrective B wave inside the larger ABC correction pattern.
Since declines of this nature typically lead to increases, the four-hour chart’s RSI, which has fallen below 30%, suggests that a reversal may be in store.
In the future, if the rally continues, AVAX may target $45—the level of the 0.382 Fibonacci retracement. If this is surpassed, it may pave the way toward $50, assuming that the market and investor sentiment stay positive.