AVAX On Thin Ice: $21.73 Support Under Siege – What’s Next?

by

As a seasoned crypto investor with battle-scarred fingers from navigating through multiple market cycles, I can’t help but feel a sense of déjà vu when analyzing Avalanche (AVAX) right now. The current bearish trend has pushed AVAX toward a critical support level of $21.73, and the bears seem to be firmly in control.

As a crypto investor, I’ve noticed a shift in the market dynamics for Avalanche (AVAX). The bears seem to be taking charge, driving the price downwards towards a crucial resistance level at around $21.73. With the bears holding the upper hand and the overall market sentiment pointing towards potential drops, this $21.73 mark is now a significant focal point for many traders.

As a crypto investor, I’m diving deep into the current bearish trend of AVAX by scrutinizing vital technical markers like Moving Averages and the Moving Average Convergence Divergence (MACD). I’m also emphasizing the importance of the $21.73 support level and its potential influence on AVAX’s price fluctuations.

Currently, at the time of this writing, AVAX‘s price has dropped about 4.67%, currently hovering around $23.75 over the last 24 hours. It possesses a market capitalization of roughly $9 billion and boasts a trading volume of $331 million. Over the past day, AVAX’s market cap has fallen by 6.37%, but its trading volume has surged by 15.60%.

Analyzing Recent Price Trends And Performance Of AVAX

The pattern of Avalanche’s price movements suggests a strong downtrend. Many candlesticks have formed below its 4-hour moving average, indicating that bears (those who sell) are in control. This could mean more falls, possibly pushing the price down towards $21.75.

As a crypto investor, I’m observing the 4-hour chart of AVAX, and it appears that both the signal line and MACD line on the Moving Average Convergence Divergence (MACD) are trending below the zero line, indicating they’re trying to move into the oversold zone. This suggests a potential continuation of the price drop for AVAX.

Analyzing AVAX over a daily timeframe shows it’s trending downwards towards a significant support point at $21.75, indicated by numerous bearish candles. Moreover, the digital currency is currently below its 100-day moving average, indicating pessimism among investors.

Examining the one-day graph, we notice that the Signal line has dipped beneath the MACD line, and both lines are now below the zero line. This suggests a prolonged downtrend and potentially more price falls to come.

Significance Of The $21.73 Support Level

Assessing the significance of the $21.73 support level suggests that:

If AVAX hits that point, it may either surge past or stabilize and drop back slightly. A fall beneath this point could result in a continued decrease in price, possibly pushing the value down towards the $18.83 support level and even lower.

If the price stabilizes and bounces back as it hits the $21.73 support, it will likely start moving upwards towards the $30.34 resistance. Overcoming this barrier might trigger additional growth, pushing against a higher resistance at $37.29 and potentially fostering more bullish expectations.

Read More

2024-08-03 21:04