During the past few weekend, Avalanche (AVAX) witnessed a whole lot of surge in selling pressure, resulting in a bearish breakout. As a consequence, the price of Avalanche (AVAX) dipped next to a multi- 30 days low of $13.8.
Nonetheless, on the 24-hour chart, the crypto 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 Avalanche (AVAX) remains bearish, as both demand and accumulation levels have remained low. The price action of Avalanche (AVAX) has been influenced by the undecided nature of Bitcoin, which recently re-entered the $27,000 range.
This has caused other crypto altcoins, including Avalanche (AVAX), to exhibit uncertainty on their respective charts. The overhead resistance level for Avalanche (AVAX) holds whole lot of importance, as surpassing this level could trigger a rally for the altcoin.
Conversely, if sellers exert further pressure, Avalanche (AVAX) may break its consolidation and fall below its immediate level of support, thereby strengthening the bearish sentiment.
Broader market strength is necessary for Avalanche (AVAX) to reclaim its overhead ceiling. The decline in the market cap of Avalanche (AVAX) signifies a decrease in buying strength at the present time.
Avalanche (AVAX) Price Analysis: One-Day Chart
At the time of publication, Avalanche (AVAX) was priced at $14.70. It is as of now trading in close proximity to its immediate resistance level of $15. A breakthrough over $15 has the capacity to propel the crypto altcoin towards $15.80 and in the end $16.
The involvement of buyers in the market is important to generate demand and facilitate AVAX’s upward price movement. On the downside, if Avalanche (AVAX) fails to maintain its current price level, it may find support at $14 before potentially trading below that level. The past few trading session showed a decline in the amount of Avalanche (AVAX) traded, indicating the dominance of sellers in the market.
Throughout May and part of April, Avalanche (AVAX) experienced consistently low buying pressure, reflecting a limited demand for the crypto altcoin. The Relative Strength Index (RSI) was below the 40-mark, indicating that sellers had a bigger presence than buyers at the time of writing.
Furthermore, the Avalanche (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 whole lot of move over the $15 price level would help Avalanche (AVAX) surpass the 20-SMA line, suggesting a potential shift in momentum and possibly attracting more buying interest.
Despite the fact that Avalanche (AVAX) recently returned to the $14 price zone, there are no clear signs of buying strength reports 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 likelihood of price fluctuations cannot be ruled out in the following trading sessions.