After confirming a bearish signal, the AVAX price is teetering on the edge of a 25% decline. This development has sparked concerns among investors about the crypto asset’s near-term outlook. The confirmation of the bearish signal suggests that the downward trend could continue, potentially leading to a significant drop in the price of Avalanche.
The price of AVAX is up 2.8% in the last 24 hours and is trading at $23.35. Nevertheless, a key technical analysis indicator has revealed Avalanche price is likely to go for further downside movement, potentially up to $17.5
Bearish Signal Confirms AVAX Price Crash Is Imminent
The Fisher Transform Indicator helps highlight extreme price movements, which can signal potential price reversals. According to this indicator, AVAX price just turned super bearish, hinting at a potential crush to $17.
Avalanche has been experiencing volatility in recent weeks. After a notable liquidity sweep around $34, the price faced a sharp rejection, leading to a current test of key support of around $24.80. This critical support level is being closely monitored by analysts and traders alike, as it could determine the next major move for AVAX.
The bearish signal confirmation has heightened fears of a potential 25% crash, which would see the price plummet to around $17.5. This scenario is particularly concerning, given the broader market conditions and the recent performance of AVAX. The crypto asset has been oscillating around the $24 mark, struggling to break above key resistance levels.
AVAX Technical Analysis Reveals Potential Bounce After Crash
AVAX price forecast shows the asset is currently trading below its 200-day Simple Moving Average (SMA) of $26.81, which is a bearish indicator. Additionally, the Relative Strength Index (RSI) hovers around 37.54, close to the oversold region, suggesting weak bearish momentum. If the RSI drops below 30, it could signal further downside potential.
Despite the bearish outlook, some analysts remain optimistic about a possible bullish rebound. They point to the potential for a breakout above $28, which could trigger a rally toward the $40 mark. This optimistic scenario hinges on AVAX maintaining its current support level and gaining enough buying pressure to overcome the bearish momentum.
The broader cryptocurrency market has also been experiencing turbulence, with many assets facing similar bearish pressures. However, Avalanche’s unique position as a layer-1, proof-of-stake blockchain with high transaction throughput and fast finality times gives it a competitive edge. These features have made AVAX a favorite among developers and investors, contributing to its resilience in market downturns.
In the short term, traders are advised to monitor key support and resistance levels closely. A breakdown below $24.80 could lead to further declines, while a breakout above $28 could signal a bullish reversal. Volume spikes and shifts in the RSI will be crucial indicators, as they could provide early signals of the next major move for AVAX.
The post AVAX Price Risks 25% Crash Following Bearish Signal Confirmation appeared first on CoinGape.
