2024-04-17
After experiencing a strong surge earlier this year, AVAX, the native cryptocurrency of Avalanche, has encountered significant selling pressure in the past week, resulting in a 23% decline in its trading value.
However, the recent rebound in the overall crypto market has helped alleviate the downward trend to some extent.
Over the last 24 hours, the price of Avalanche (AVAX) has increased by 7% and is currently trading at $37.91.
Despite this recovery, it remains at a 35% discount from its peak of $60 in 2024.
A detailed analysis of the 4-hour chart reveals that AVAX has dipped below both the 100-day moving average and the trend line, indicating a potential continuation of the downward trajectory in price.
The MACD indicator, also observed on the 4-hour timeframe, reflects a strong bearish sentiment, with the MACD histograms trending below the zero line, along with both the MACD line and signal line.
Furthermore, the Relative Strength Index (RSI) on the 4-hour timeframe indicates a bearish trend, as the RSI signal line hovers around the oversold zone.
Despite the possibility of a short-term retracement, the prevailing indicators suggest a continued downward movement in price.
The alligator indicator, which is widely used to assess asset trends, shows a bearish outlook for AVAX.
In the depicted chart, both the alligator's lip and teeth have crossed below the alligator's jaw, indicating a downward trend.
This configuration implies the potential for further price decline.
Analyzing Avalanche's price action reveals two significant resistance levels at $50 and $59.99, along with a support level at $39.95.
With Avalanche currently trending downward, breaching the $39.95 support level could trigger a further decline towards the subsequent low at $27.53.
On the other hand, if the price manages to hold above its previous low, it may initiate an upward correction towards the $50.80 resistance level. Surpassing this level could lead AVAX to extend its rally towards the $59.99 resistance level.
As of now, Avalanche is trading around $38, experiencing a 1.75% decline in the last 24 hours. Its market capitalization has decreased by over 16%, while trading volume has surged by nearly 250% within the same period.
