Avalanche price analysis shows a bearish trend taking over the trade pattern, as price dropped more than 6 percent over the past 24 hours to move as low as $19.29. AVAX enjoyed a strong run over the past week to break the resistance point at $20 and move up to $21.74 on January 28. However, sellers swiftly acted to take profits out of the market, as price slipped back to the current level at $19.74. With further corrections expected, AVAX could drop down to the previous support zone at $17.50, with further decrement over the next 24 hours keeping possibility to reach the $15 mark open.
The larger cryptocurrency market also endured a bloodbath over the past 24 hours, led by Bitcoin’s demise back to below $23,000 as it dropped 4 percent. Ethereum also succumbed 4 percent to move down to $1,500. Meanwhile, among leading Altcoins, Ripple dropped 4 percent to sit at $0.39, whereas Dogecoin dipped 3 percent to move as low as $0.08. Cardano lowered 6 percent to $0.37, while Polkadot also shed 6 percent to settle at $6.19.
Avalanche price analysis: 24-hour RSI dips along with price correction
On the 24-hour candlestick chart for Avalanche price analysis, price can be seen moving downwards in a trend reversal after initially extending along an ascending triangle since January 8. Price currently sits just above the 9 and 21-day moving averages, along with the important 50-day exponential moving average (EMA) at $19.04. With further potential decline in place, AVAX could steer further south below the important DMAs on the daily chart.
The 24-hour relative strength index (RSI) can be seen dropping in a similar fashion to price over the past 24 hours, after initially extending deep into the overbought zone at 76.70. Currently at 64, the RSI is expected to decrease as price continues to correct further. Meanwhile, the moving average convergence divergence (MACD) curve also shows formation of lower highs as the trend line approaches the signal line to indicate a bearish divergence. Trading volume over the past 24 hours rose 60 percent, indicating majority seller action.
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