Avalanche Might Continue Its Downtrend As Price Slips To $16
July 01 2022 - 12:00AM
NEWSBTC
Avalanche had performed well over the past week, however, the coin
depreciated significantly over the last 24 hours. It shed close to
12% over the past day. AVAX experienced tough resistance at the $21
mark, and it was unable to break over it causing price of the asset
to slump further. Bitcoin and other major market movers has been
struggling to trade above their immediate resistance mark too. BTC
has been stuck at the $20,000 mark over the last few days. Broader
market weakness has caused most altcoins to drop on their charts.
Currently, most prominent altcoins including AVAX has been
witnessing a wave of selling pressure. With mounting selling
pressure, AVAX might move closer to the immediate support level of
$14 over the next trading sessions. Since, the coin bounced from
the $20 price level, AVAX has ever since continued to move south on
its 24 hour chart. The global cryptocurrency market cap today is
$892 Billion with a fall of 5.1% over the last 24 hours. Avalanche
Price Analysis: One Day Chart AVAX was exchanging hands at $16 on
the 24 hour chart. After being rejected at the $20 level, the coin
continued to move on the bearish trend. The next support line for
the coin was at $14. If the coin is unable to sustain above
the $14 mark, it could trade near the $13 mark. Overhead resistance
was at $21, despite AVAX trying to break past it, the coin has
failed multiple times causing the bears to gain strength. The
volume of AVAX traded declined on the chart and the volume bar was
in red which signified selling pressure and bearishness. Technical
Analysis AVAX has barely registered buying strength over the past
month. Over the last few days even though the coin registered some
buying strength recovery, the current price drop invalidated the
same. The Relative Strength Index was below the half-line for whole
of this month, with occasional dip into the oversold region. At
press time RSI again noted a downtick suggesting continuation of a
downtrend. Conversely, Moving Average Convergence Divergence
flashed green signal bars. The indicator depicts the current price
direction and possibility of price reversals too. The green signal
bars on the MACD are considered to be a buy signal and this
presents a buying opportunity. If buyers act on it, AVAX might
experience some relief. Related Reading | Tracking Whales, What
This Bitcoin Divergence Could Hint About BTC’s Price Buying
momentum faded from AVAX’s charts, in consonance so did the amount
of capital inflows. Chaikin Money Flow depicts capital inflows and
outflows, the indicator was below the halfline. This reading meant
that capital inflows were lesser than outflows suggesting higher
selling pressure. Bollinger Bands constricted sharply, indicating
that explosive price movement could possibly be on the charts.
Bollinger Bands reads the price volatility in the market. Overall,
technical outlook remains heavily bearish for AVAX suggesting
further southbound action for the coin. If buyers re-enter the
market, the coin can manage to move upwards for the next trading
sessions. Related Reading | TA: Ethereum Key Indicators Suggest A
Sharp Drop Below $1K Featured image from www.avax.network, chart
from TradingView.com
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