Avalanche Price Analysis: Are AVAX sellers aiming to record the last yearly low in the coming sessions?
- The avalanche price is extremely bearish as the price continues to drop into the red zone of the Super Trend indicator.
- The AVAX price trend is forming towards the 2022 yearly lows inside a descending triangle.
- The daily RSI indicator is showing a recovery signal after breaking out of the strong oversold zone.
Avalanche is arguably the fastest smart contract platform in the entire blockchain industry. However, AVAX, Avalanche’s native coin, is underperforming in the cryptocurrency market. Meanwhile, Avalanche (AVAX) is strongly bearish in the long and short term.
Buyers experienced a catastrophic decline after being rejected near the conceptual $100 level, dragging the price of the cryptocurrency to a 6-month low of $21.3.
Despite the recovery of the AVAX coin, the price action remains inside a descending triangle near its 2022 yearly lows. As a result, AVAX is trading at $22.6 at the time of writing with a variation price neutral during an intraday trading session.
The range of the triangle pattern is narrowing and the altcoin could provide bullish momentum either up or down. Thus, according to CMC, the market capitalization fell by 7.8% in the last 24 hours to $6.3 billion.
Trading volume shows highly volatile trading sessions for AVAX speculators. The increase in volume during the selloff indicates the strength of the bears on the altcoin. The selling effect can be seen in the bitcoin pair with AVAX, where the pair is down 5.2% at 0.000771 satoshis.
The avalanche price is extremely bearish as the price continues to decline in the red zone of the Super Trend indicator in terms of the daily price chart.
But the RSI reflects signs of recovery
The RSI indicator is showing a recovery signal after breaking out of the overbought zone. The RSI peaks inside a parallel ascending channel on the daily price chart. But the ADX dropped dramatically.
The ADX indicator is trending lower, suggesting that the selling may be halted near the 6-month low. But if AVAX investors fail to manage costs above the recent low, there could be a scarier selloff.
Support level – $21 and $10
Resistance level – $40 and 55
The views and opinions expressed by the author, or anyone named in this article, are for informational purposes only, and they do not constitute financial, investment or other advice. Investing in or trading crypto assets involves the risk of financial loss.