Avalanche had done well in the previous week. However, it has declined significantly in the last 24 hours. Over the past 24 hours, it lost nearly 12%. AVAX encountered resistance near the $21 level, but it couldn’t break it. This caused the asset’s prices to plummet further.
Bitcoin, like other market leaders, has struggled to trade higher than their resistance level. Over the past few days, BTC stuck around the $20,000 level. Majority of altcoins are seeing a decline in market strength.
AVAX, one of the most popular altcoins currently under selling pressure, is among them. AVAX could move closer to $14 support in the coming trading sessions due to increasing selling pressure.
The coin has bounced back from $20 and AVAX continues to slide on its 24-hour chart. With a decline of 5%, the global cryptocurrency market capitalization today stands at $892 Billion. 5.1%Over the past 24 hours.
Avalanche Price Analysis: One Day Chart
AVAX exchanged hands at $16 per hour on the 24-hour chart. The coin moved on the bearish trend after being rejected at $20. Next support for the coin was $14. It could trade close to $13 if the coin fails to hold above that mark.
Overhead resistance stood at $21. Despite AVAX trying hard to overcome it, AVAX failed numerous times, causing bears to grow in strength. AVAX’s volume was declining on the chart. The red volume bar indicated bearishness and selling pressure.
Technical Analysis
AVAX’s buying strength has been very low over the last month. Despite some price drops in the past few days, AVAX has not registered any buying strength improvement over the past month. The Relative Strength Index (RSI) was lower than the 50% line for the month. There were occasional dips into the oversold zone.
RSI reported a new downtick at press time, indicating a continuation of a downward trend. Moving Average Convergence Divergence displayed green indicator bars. It shows both the direction of current prices and potential price reversals.
Green signal bars at the MACD can be considered a buy signal, and they represent a potential buying opportunity. AVAX could experience some relief if buyers take advantage of it.
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Buying momentum faded from AVAX’s charts, in consonance so did the amount of capital inflows. Chaikin’s Money Flow shows capital inflows as well as outflows. It was at the lower halfline. This indicated that capital outflows were lower than inflows, which suggests higher selling pressure.
Bollinger Bands narrowed sharply, which indicates that there could be an explosive price move on the charts. Bollinger Bands is a measure of market price volatility. Technical outlook for AVAX remains bearish, suggesting that the coin will continue to move south.
The coin may move up if buyers return to the market.
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Featured Image from www.avax.network. Chart taken from TradingView.com