Avalanche (AVAX), a layer 1 blockchain, is currently experiencing a bearish phase as strong market forces drive down its price. Recent fluctuations have intensified this downward trend, with bears dominating the trading environment.
Following a notable market correction, the token has seen a clear decline, influenced by ongoing volatility in the broader cryptocurrency market. As these bearish conditions persist, traders and investors closely monitor AVAX for signs of stabilization.
Crypto markets saw mixed movements today. Bitcoin rebounded above $68,000 amid global investor attention, while ETH continued its downward trend. Meanwhile, SOL and XRP followed Bitcoin’s upward momentum, gaining traction and aligning with the broader market upswing.
Avalanche Price Dips; Will Bears Push it Towards $20?
The Latest AVAX price is $26.73, showing a 3% decrease over the last 24 hours and a 7% decrease in the past week.
The key resistance level stands at $27, a critical threshold for AVAX’s price movement. A successful breakout above this resistance, especially with increased trading volume, could set the stage for a rise toward the $30 target.
How Low Can AVAX Price Go?
The daily technical indicators for the Avalanche price reflect a bearish outlook. The Relative Strength Index (RSI) stands at 32, nearing oversold conditions, indicating possible selling pressure.
Additionally, the MACD (Moving Average Convergence Divergence) shows a bearish crossover, with the MACD line sitting at -0.07, while the signal line remains higher at -0.35. The histogram shows negative momentum, indicating that the selling trend may persist in the short term.
Avalanche Price Chart: TradingView
The whale holdings of stablecoins, valued at over 5 million USD, have seen notable increases as Avalanche prices remain volatile. Over recent months, as the price of AVAX fluctuated, whale activity has steadily risen, reflecting potential strategic moves within the market. These trends highlight ongoing shifts in major holders’ behavior as they accumulate more stablecoins amidst market uncertainty.
Source- Santiment
If bears intensify pressure on the AVAX price forecast, the price could face further downward momentum, potentially falling toward the $20 mark. Such a scenario would intensify volatility, prompting further shifts in the trading strategies of investors and whales.
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