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05/08/24
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AVAX Faces Bearish Pressure: Key Support Level at $21.73 to Determine Next Direction
Recent trading activity for Avalanche (AVAX) demonstrates a clear dominance by bearish forces, driving the cryptocurrency’s price down toward a crucial target of $21.73. Given the prevailing negative market sentiment, this level has garnered significant attention from traders and analysts alike, as it could signal a critical juncture for the asset.
Currently, AVAX is priced at approximately $23.75, reflecting a 4.67% decline over the past day. With a market capitalization of around $9 billion and trading volume reaching $331 million, AVAX’s market cap has dropped by 6.37% recently, although trading volume has seen an uptick of 15.60%. This data suggests heightened activity in a choppy market environment.
Technical analysis indicates that AVAX has been exhibiting pronounced bearish behavior. On the 4-hour chart, the formation of multiple bearish candlesticks below the 100-day Simple Moving Average suggests sustained downward pressure. Furthermore, the Moving Average Convergence Divergence (MACD) signals are also trending below the zero line, reinforcing expectations of continued price declines as the asset approaches the critical support level.
On a broader scale, the 1-day chart indicates AVAX is on a downturn, aligning with the bearish sentiment reflected in the technical indicators. The MACD indicator has recently crossed downward, and the asset is trading below the 100-day SMA. This trend suggests that the cryptocurrency is likely to encounter further challenges as it approaches the $21.73 support mark.
The importance of the $21.73 support level cannot be understated. Should AVAX breach this level, it may lead to an accelerated decline, potentially targeting the $18.83 support mark. Conversely, if the asset manages to stabilize and recover from this point, it could pivot towards higher resistance levels, including $30.34, and possibly navigate further upward to $37.29, fostering a renewed bullish outlook among traders.
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