Technical Indicators Suggest A Bearish Trend For Avalanche
When observing the chart from the 4-hour timeframe, AVAX has crossed below both the 100-day moving average and the trend line. This could signal a downward trend for the price. The MACD indicator on the 4-hour timeframe indicates a strong bearish movement as the MACD histograms are trending below the MACD zero line.
Additionally, both the MACD line and MACD signal line are trending below the zero line. The formation of the MACD indicator suggests a potential further downward movement for the price.
Furthermore, the Relative Strength Index (RSI) on the 4-hour timeframe also indicates a bearish trend, with the RSI signal line trending around the oversold zone. Despite the possibility of a retracement, the price is likely to decline further.
The alligator indicator, another powerful tool for determining asset trends, shows that both the alligatorโs lip and teeth have crossed over the alligatorโs jaw, pointing downward. This formation indicates a bearish trend and suggests that the price may experience a deeper decline.
What Could Happen Next
Considering the priceโs previous movements, there are two major resistance levels at $50 and $59.99, along with a support level at $39.95. If prices break below the support level of $39.95, it could lead to a further decline towards the next low of $27.53.
Alternatively, failing to break below the previous low may initiate an upward correction towards the $50.80 resistance level. If the price surpasses this level, AVAX could potentially reach the $59.99 resistance level.
Currently, Avalanche is trading around $38, indicating a 1.75% decrease in the last 24 hours. The market cap has decreased by over 16%, while trading volume has surged by nearly 250% in the past day.
Hot Take
Generally, the cryptocurrency market is bearish at the moment, with coins like Avalanche (AVAX), Ethereum, Litecoin, XRP, Solana, and others all caught in this trend. Currently, the price of AVAX is on a strong bearish move below the 100-day Moving Average (MA) and could continue in that direction for a while before retracing.
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