The AVAX token, used on the Avalanche blockchain, currently holds the 12th position in terms of market capitalization. With over 440 million AVAX tokens in circulation and a trading volume exceeding $396 million in the last 24 hours, it is evident that AVAX is a significant player in the cryptocurrency market. However, recent price movements have shown a bearish trend, with AVAX dropping below the 100-day Simple Moving Average (SMA) after a pullback at $36.15. This downward movement indicates potential challenges for the token in the near future.
When analyzing the 4-day MACD indicator, we observe that the MACD histograms are trending below the zero line, indicating a continuous downward movement. Both the MACD line and the Signal line have crossed each other below the MACD zero line, further reinforcing the bearish sentiment. Similarly, the 4-day RSI shows that sellers are dominating the market, as the RSI signal line has dropped below the 50% level. This suggests that the price of AVAX might continue to face downward pressure in the coming days. Additionally, the Alligator Indicator on the 4-hour timeframe highlights that AVAX is trading below the alligator lines, with unsuccessful attempts to move above them. This further supports the notion that the token is likely to experience further downside movement.
From a technical standpoint, AVAX has established two resistance levels at $39.94 and $36.15, as well as a support level at $30.34. The current movement towards the support level indicates a potential for the price to drop even lower. If AVAX successfully breaks below this support level, it could lead to a new low for the token. However, if the price fails to breach the support level, a reversal might occur, pushing the price towards the previous resistance level of $36.15. Breaking above this resistance level could pave the way for further upward movement, potentially testing the $39.94 resistance level.
The technical analysis of AVAX price movement suggests a bearish outlook in the short term. The combination of indicators such as MACD, RSI, and the Alligator Indicator point towards a continued downward trend for AVAX. Traders and investors should closely monitor key support and resistance levels to gauge potential price movements and make informed decisions based on market conditions.