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Avalanche Price Analysis: AVAX is bearish for the next 24 hours

Avalanche price analysis

TL;DR Breakdown

  • Avalanche price analysis is bearish today.
  • AVAX is currently trading at $101.
  • AVAX faces resistance at the $110 mark

The Avalanche price analysis confirms that after failing to reach the $110 mark, buyers could not establish a support level above $100, and declining selling pressure caused AVAX to retreat to $100. AVAX then experienced a mini-rally that suggested upward movement was possible, but this failed to materialize at the $110 mark. The lack of buying interest precipitated a drop below $100, and AVAX is now trading around the $98.21 level, where it faces resistance from pre-retraction sellers. While it’s difficult to determine what will happen next without more information, our analysis suggests that further declines are likely to be seen in the short term.

Avalanche price analysis: AVAX rejected at $109

Nevertheless, provided that all moving averages are respected, there’s likely to be some consolidation before long-term growth resumes. However, it is difficult to predict what will happen next without further market sentiment or news events. Furthermore, if the selloff continues lower, resistance at $95 may be tested in case of a drop back towards the primary support line, which converges with the 200 SMA near this level.

As for now, due to the lack of trading volume after breaking below $100, it suggests that neither traders are willing to buy nor sell AVAX at this price level. Besides, Bollinger Bands are still moving upwards, indicating that volatility may increase in AVAX in the hours ahead. The MACD indicator remains in positive territory, but its further movement toward zero begs more information on whether or not downward momentum will contribute to further depreciation of Avalanche coin’s price in the short term. AVAX has been trading in a bullish trend across the mid-term charts. It has made higher highs and is now approaching an EMA crossover. The 12-EMA is currently moving downward, converging with the 26-EMA, gradually curving to accommodate the most recent price movement.

The Bollinger Bands are presently wide, but they appear to be converging as the price action swings beneath the $110 marg. As AVAX trades above the indicator’s mean line, the bands are likely to converge upwards. While the indicator suggests a decrease in AVAX price volatility, a downward breakout would indicate a drop to the $98.21 support level.

AVAX four-hour price analysis: What to expect from the Avalanche price analysis?

Avalanche Price Analysis: AVAX is bearish for the next 24 hours 1
4-hour price chart by Tradingview

The bulls’ failure to reach the $110 price level is shown by the Avalanche chart. Furthermore, because of the powerful bullish movement, AVAX was unable to maintain a presence above $100 and dropped back below the key support level. The negative force remains as resistance at $100 appears shaky.

Traders should anticipate the price to drop to $98.21 as support before recovering above $100. The bulls must regather their momentum and establish a support level above $100 before the price can retest the $110 mark again. As a result, AVAX is likely to consolidate around the $105 mark soon.

The Avalanche price analysis suggests that if the bulls can not defend $100, further downward movement may occur. This has become more likely given the lack of buying pressure which precipitated the fall beneath support at $100. The RSI also shows a diminishing bullish momentum, making it easier for sellers to overpower buyers should they attempt to establish a position above the 100 mark again. Furthermore, AVAX faces resistance at the $110 mark. Traders should anticipate that any advance towards this level would be unsustainable unless supported by an increase in trading volume.

Avalanche Price Analysis: Conclusion

Avalanche coin has not maintained a position above the $100 mark, consequently dropping in value. This was anticipated after the price entered into overbought territory in the hours leading to the early hours of Thursday morning. At this moment, it appears that there is no significant resistance at this support level, but should traders anticipate a bounce back to $105 before further depreciation occurs? Only time will tell.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Sergio Goschenko

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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