The cryptocurrency market is currently experiencing a bearish trend, affecting prominent coins like Avalanche (AVAX), Ethereum, Litecoin, XRP, Solana, and others. Specifically, the price of AVAX has been on a strong downward movement below the 100-day Moving Average (MA), indicating a potential continuation of this trend in the near future.
Analyzing the 4-hour timeframe chart for AVAX, it is evident that the coin has crossed below both the 100-day moving average and the trend line, signaling a downward trajectory. The MACD indicator further confirms this bearish sentiment, with the MACD histograms trending below the MACD zero line, along with both the MACD line and signal line also below the zero line. These indicators suggest a high likelihood of the price continuing to decline.
Considering the Relative Strength Index (RSI) on the 4-hour timeframe, which is currently indicating a bearish trend by hovering around the oversold zone, it is expected that the price of AVAX will drop further. Additionally, the alligator indicator, showing both the alligator’s lip and teeth crossing over the jaw in a downward direction, reinforces the bearish outlook for the coin.
Based on historical price movements, AVAX has two major resistance levels at $50 and $59.99, with a support level at $39.95. If the price breaks below the support level, it could potentially drop to $27.53. On the other hand, failing to break below the previous low might initiate an upward correction towards the resistance level of $50.80, and potentially even reaching $59.99 if this level is surpassed.
As of the time of writing, AVAX is trading at $38, reflecting a 1.75% decline in the last 24 hours. The coin’s market cap has decreased by over 16%, while its trading volume has surged by nearly 250% in the past day. These statistics indicate a significant shift in market sentiment and trading activity surrounding AVAX.
The current analysis of AVAX in the cryptocurrency market points to a strong bearish trend, supported by various technical indicators and price predictions. Traders and investors in the space should exercise caution and conduct thorough research before making any investment decisions. It is essential to stay informed and monitor the market closely to navigate the volatile nature of cryptocurrencies effectively.