HomeBitcoinOngoing Decline of Avalanche (AVAX) Amid Market Instability

Ongoing Decline of Avalanche (AVAX) Amid Market Instability


Generally, the cryptocurrency market is bearish at the moment, with coins like Avalanche (AVAX), Ethereum, Litecoin, XRP, Solana, and others all caught in this trend. Currently, the price of AVAX is on a strong bearish move below the 100-day Moving Average (MA) and could continue in that direction for a while before retracing.

Technical Indicators Suggest A Bearish Trend For Avalanche

Observing the chart from the 4-hour timeframe, AVAX has crossed below both the 100-day moving average and the trend line. This could mean that the price is on a downward trend. The MACD indicator on the 4-hour timeframe suggests a very strong bearish movement as the MACD histograms are trending below the MACD zero line.

Also, both the MACD line and MACD signal line are trending below the zero line. Given the formation of the MACD indicator, it shows that there is a possibility that the price will still move further downward.

Furthermore, the Relative Strength Index (RSI) also on the 4-hour timeframe suggests a bearish trend as the RSI signal line is trending around the oversold zone. Despite the potential of a retracement at this point, the price will drop more following this.


The alligator indicator is another powerful tool used to determine the trend of an asset. A look at the above image shows that both the alligator’s lip and teeth have crossed over the alligator’s jaw facing the downward direction. This formation suggests that the trend is bearish and that the price could witness a deeper decline.

What Could Happen Next

Based on the price’s previous movement, there are two major resistance levels of $50 and $59.99 and a support level of $39.95. As Avalanche is on a negative trajectory, if prices manage to break below the support level of $39.95, it could trigger a move further toward the next low of $27.53.

On the other hand, if the price fails to break below its previous low, it might start an upward correction movement toward the resistance level of $50.80. However, if it manages to break past this level, AVAX might move even further toward the $59.99 resistance level.

As of the time of writing, the Avalanche was trading around $38, indicating a decline of 1.75% in the last 24 hours. Its market cap is down by over 16%, while its trading volume has increased significantly by nearly 250% in the past day.

AVAX trading at $38 on the 1D chart | Source: AVAXUSDT on Tradingview.com

Featured image from Shutterstock, chart from Tradingview

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.


Please enter your comment!
Please enter your name here


An Academic Journal by Unlearn Shows Evidence of Implementing AI-Powered Digital Duplicates in the Healthcare Sector

SAN FRANCISCO–(BUSINESS WIRE)–Unlearn®, an artificial intelligence research company today announced its peer-reviewed scientific manuscript, entitled “Increasing Acceptance of AI-Generated Digital Twins Through Clinical Trial...

Forget $10,000, Expert in Cryptocurrency Predicts Ethereum ETFs Will Drive ETH To $14,000

The long-awaited Ethereum ETFs have finally hit the market, marking a significant milestone for Ethereum and other altcoins. Industry experts and enthusiasts are looking...

Solympics Price Projection: SOLYMPICS Drops 43% With Specialists Advising to Look at This Alternate Olympics Meme Coin For 10x Profits

Join Our Telegram channel to stay up to date on breaking news coverage The Solympics price crashed 43% in the last 24 hours to trade...

Most Popular