During theย pastย few weekend, Avalancheย (AVAX) witnessed a wholeย lotย of surge in selling pressure, resulting in a bearish breakout. As a consequence, the price of Avalancheย (AVAX) dipped nextย to a multi- 30ย days low of $13.8.
Nonetheless, on the 24-hour chart, the cryptoย altcoin displayed a slight upward movement, showing some appreciation. On the other hand, the weekly chart depicted lacklustre performance for AVAX.
The technical outlook for Avalancheย (AVAX) remains bearish, as both demand and accumulation levels have remained low. The price action of Avalancheย (AVAX) has been influenced by the undecided nature of Bitcoin, which recently re-entered the $27,000 range.
This has caused other cryptoย altcoins, including Avalancheย (AVAX), to exhibit uncertainty on their respective charts. The overhead resistance level for Avalancheย (AVAX) holds wholeย lotย of importance, as surpassing this level could trigger a rally for the altcoin.
Conversely, if sellers exert further pressure, Avalancheย (AVAX) may break its consolidation and fall below its immediate levelย ofย support, thereby strengthening the bearish sentiment.
Broader market strength is necessary for Avalancheย (AVAX) to reclaim its overhead ceiling. The decline in the marketย cap of Avalancheย (AVAX) signifies a decrease in buying strength at theย present time.
Avalancheย (AVAX) Price Analysis: One-Day Chart
Atย theย timeย ofย publication, Avalancheย (AVAX) was priced at $14.70. It is asย ofย now trading in close proximity to its immediate resistance level of $15. A breakthrough over $15 has theย capacity to propel the cryptoย altcoin towards $15.80 and inย theย end $16.
The involvement of buyers in the market isย importantย to generate demand and facilitate AVAXโs upward price movement. On the downside, if Avalancheย (AVAX) fails toย maintain its current price level, it may find support at $14 before potentially trading below that level. Theย pastย few trading session showed a decline in the amount of Avalancheย (AVAX) traded, indicating the dominance of sellers in the market.
Technical Analysis
Throughout May and part of April, Avalancheย (AVAX) experienced consistently low buying pressure, reflecting a limited demand for the cryptoย altcoin. The Relative Strength Index (RSI) was below the 40-mark, indicating that sellers had aย bigger presence than buyers at the time of writing.
Furthermore, the Avalancheย (AVAX) price dropped below the 20-Simple Moving Average (20-SMA) line, demonstrating that sellers were the driving force behind the price momentum in the market.
A wholeย lotย of move over the $15 price level would help Avalancheย (AVAX) surpass the 20-SMA line, suggesting a potential shift in momentum and possibly attracting more buying interest.
Despiteย theย factย that Avalancheย (AVAX) recently returned to the $14 price zone, there are no clear signsย of buying strength reportsย by technical indicators.
The Moving Average Intersection Divergence (MACD), provides insights into price momentum. It formed only one green histogram, which does not necessarily signify buy indicates at this point.
The Bollinger Bands, which reflect price volatility and fluctuations, have remained wide, indicating that the likelihoodย of price fluctuations cannot be ruled out in theย following trading sessions.
