As a researcher with experience in analyzing cryptocurrency markets, I’ve been closely monitoring the trend of AVAX, the native utility token of the Avalanche blockchain. Based on my technical analysis and the current market conditions, it appears that AVAX is currently experiencing a downtrend.
As a crypto investor, I’d describe AVAX as the native token powering the Avalanche blockchain network. Currently ranked 12th by market capitalization, it boasts a total supply of approximately 440 million AVAX tokens and a substantial daily trading volume surpassing $396 million. However, after experiencing a recent dip to around $36.15, AVAX has continued to trend downward.
At present, the overall cryptocurrency market is showing bearish trends, causing the value of AVAX to fall beneath its 100-day Simple Moving Average (SMA). It’s possible that the price could decrease further over the next few days. As I write this, the price of AVAX hovers around $33.52 and has dropped by a modest 0.22% in the last 24 hours.
Technical Indicators Point Toward A Sustained Downtrend For AVAX
To determine the potential direction of AVAX‘s price, consider examining the chart with these indicators as a guide.
The MACD indicator, which is derived from the 4-hour chart, exhibits a bearish trend based on its histograms being beneath the zero line. Furthermore, the MACD line and Signal line have intersected while remaining below the MACD zero line, signaling an uninterrupted downward momentum. This is evident in the image provided below.
In the given chart, the development of the Relative Strength Index (RSI) indicates a potential downtrend continuation. The RSI signal line crossed above the 50% threshold but subsequently dipped below it again. This implies that selling pressure remains significant in the market, outweighing the buying power.
As a researcher studying the charts of AVAX from a 4-hour perspective, I’ve noticed an intriguing pattern emerging: the alligator indicator. Currently, the alligator lip and teeth have risen above the alligator jaw, signaling bearish sentiment for the asset. The price attempted to break above these levels but was unsuccessful, implying that AVAX might continue its downward trend based on this technical analysis.
The Coin Could Form A New Low
Based on my analysis of the recent price action for AVAX, I’ve identified two resistance levels at $39.94 and $36.15, which have previously prevented the price from advancing. Additionally, there is a support level at $30.34 that the price is currently approaching. If AVAX manages to break above this support level, it could lead to further downward pressure and potentially create a new lower price point.
If the price doesn’t rise above this support level, it may instead drop and head back up toward its previous resistance at $36.15. However, if AVAX can surpass this resistance level, the price could continue climbing to challenge the next hurdle at $39.94.
Read More
Sorry. No data so far.
2024-05-11 15:04