In simple terms, the cryptocurrency market is currently experiencing a downtrend, with coins such as Avalanche (AVAX), Ethereum, Litecoin, XRP, Solana, and others following this trend. At present, AVAX’s price is on a significant downward slide beneath its 100-day Moving Average (MA) and may continue to decrease before potentially bouncing back.
Technical Indicators Suggest A Bearish Trend For Avalanche
Based on the 4-hour chart, AVAX has dropped beneath not only its 100-day moving average but also the trendline, implying a potential decline in price. The MACD indicator on this same timeframe indicates a robust bearish momentum since the MACD histograms are situated below the MACD zero line.
Additionally, the MACD line and signal line are currently sitting beneath the zero mark. According to this MACD configuration, there’s a strong likelihood that prices may continue descending.
In addition, the RSI indicator on the 4-hour chart indicates a bearish market trend since the RSI signal line hovers near the oversold region. Although there might be an opportunity for a brief bounce back, the downward price movement is expected to continue afterward.
The alligator indicator is a valuable resource for identifying an asset’s trend based on its price movements. As depicted in the image above, when both the alligator’s lips and teeth lie below its jaw and point downward, it signifies a bearish trend. This means that the asset’s price may experience a more significant decrease.
What Could Happen Next
Based on its past price behavior, there are two significant resistance points at $50 and $59.99, as well as a support level at $39.95 for Avalanche. Given the current downward trend, if the price falls below the support level of $39.95, it may lead to additional declines towards the next potential low of $27.53.
If the price doesn’t drop below its prior low, there could be a reversal and AVAX may rise towards the resistance of $50.80. But if it surpasses that level, AVAX could continue climbing up to $59.99.
At the moment I’m writing this, the price of Avalanche is approximately $38. This represents a decrease of 1.75% within the last 24 hours. Additionally, its market capitalization has dropped more than 16%, while trading volume has surged nearly 250% in just one day.
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2024-04-13 22:34