- Avalanche price analysis suggests downwards movement
- The closest support level lies at $100 and further below at the $98.21 mark
- AVAX faces resistance at the $110 mark
The Avalanche price analysis shows that after failing to climb above the $110 mark, the buyers were unable to establish a support level above the $100 mark and the increasing selling pressure caused AVAX to fall back to the $100 mark.
The broader cryptocurrency market has observed a bearish market sentiment over the last 24-hours as most major cryptocurrencies record negative price movements. Major players include SOL and VET recording a 7.91 and a 7.87 percent decline each.
Avalanche price analysis: AVAX rejected at $109, can the bulls defend $100?
Across the technical indicators, the MACD is currently bullish as expressed by the green color of the histogram. However, the indicator has shown a lighter shade in the last 12-hours suggesting a decline in the bullish momentum after the price action was rejected at the $110 mark. As the price returns towards the $100 mark, the momentum can be expected to decline further while a downwards breakout would cause a bearish turnover across the short term.
The EMAs are high as AVAX has been trading in a bullish trend across the mid-term charts rising from lows of $60 where it traded at the end of October. Currently, the 12-EMA is moving downwards converging with the 26-EMA while the latter slowly curves to accommodate the recent price movement.
The RSI is currently neutral and trades close to the mean position trading at 57.86. The RSI is trading above the mean position of the indicator showing low bullish momentum while the downwards slope of the index suggests a further decline. Currently, the indicator suggests that AVAX has room for strong downwards movement before the asset would need a trend correction.
The Bollinger Bands are currently wide but show convergence as the price action oscillates below the $110 mark. As AVAX is trading above the indicator’s mean line, the bands can be expected to converge upwards. At press time, the indicator suggests a drop in AVAX price volatility while a downwards breakout would mean a fall to the $98.21 support level.
Technical analysis for AVAX/USDT
Overall, the 4-hour Avalanche price analysis issues a buy signal as 14 of the 26 major technical indicators support the bulls across the timeframe. On the other hand, only two of the indicators support the buy showing little to no selling activity in the markets. Meanwhile, the remaining ten indicators sit on the fence and do not issue any signals at press time.
The 24-hour Avalanche price analysis shares this sentiment and issues a buy signal with 14 of the indicators supporting the sellers against only four indicators suggesting an upwards movement. The analysis shows strong bearish dominance across the mid-term charts. At the same time, eight of the indicators do not support either side of the market and stay neutral.
What to expect from the Avalanche price analysis?
The Avalanche price analysis shows that the bulls struggled and failed in climbing above the $110 price level. Furthermore, the strong bullish movement meant that AVAX had no foothold above the $100 mark and so the price has fallen back to the key support level. The bearish pressure still persists as $100 support appears feeble.
Currently, traders should expect the price to fall to $98.21 support level before recovering above the $100 mark. The buyers need to recover the momentum and establish a support level above the $100 mark before the price can retest the $110 mark. As such, AVAX can be expected to consolidate around the $105 mark.
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