Aug 04, 2024 12:05
Recent market activities for Avalanche (AVAX) indicate that the bears have gained control over the market, pushing the cryptocurrency toward a critical price target of $21.73. With the bears dominating and market sentiment leaning heavily toward further declines, the $21.73 level has become a key point of interest for market participants. This analysis delves into AVAX’s current bearish trend by examining key technical indicators such as Moving Averages and the Moving Average Convergence Divergence (MACD). Additionally, it highlights the significance of the $21.73 support level and its potential impact on AVAX’s price movement As of the time of writing, AVAX’s price has decreased by 4.67%, trading at approximately $23.75 over the past 24 hours. The cryptocurrency has a market capitalization of $9 billion and a trading volume of $331 million. AVAX’s market cap has declined by 6.37% in the past day, while its trading volume has increased by 15.60%. Analyzing Recent Price Trends And Performance Of AVAX Avalanche has shown significant bearish strength, with multiple bearish candlesticks forming below the 4-hour 100-day Simple Moving Average (SMA). This indicates bearish dominance and suggests continued downward pressure, potentially leading to further declines toward $21.75. Also, on the 4-hour chart, both the signal line and the MACD line of the Moving Average Convergence Divergence (MACD) are trending below the zero line and are currently attempting to move into the oversold zone. This supports the potential for continued downward movement in AVAX’s price. Technical analysis on the 1-day chart reveals that AVAX has been on a bearish trajectory toward a critical support level at $21.75, marked by the formation of multiple bearish candlesticks. Furthermore, the crypto asset’s price is trading below the 100-day SMA, suggesting a bearish market sentiment. Looking at the 1-day chart, it can be observed that the Signal line has crossed below the MACD line and both have recently dropped below the zero line, which implies a continued bearish trend and indicates the chance for further price declines. Significance Of The $21.73 Support Level Assessing the significance of the $21.73 support level suggests that: If AVAX reaches this level, it might break through or consolidate and retrace. A successful break below could lead to further price decline, potentially driving the asset toward the $18.83 support level and beyond. However, if the price consolidates and retraces upward upon reaching the $21.73 support level, it will begin to climb toward the $30.34 resistance point. Should the price break through this range, it could lead to further gains, testing a higher resistance level at $37.29 and potentially increasing bullish sentiment. Featured image from Adobe Stock, chart from Tradingview.com
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