Recent market activities for Avalanche (AVAX) have seen the bears seize control, pushing the cryptocurrency toward a crucial price target of $21.73. With bearish dominance in full swing and market sentiment skewed toward further declines, the $21.73 level has emerged as a focal point for market participants.
An analysis of AVAX’s current bearish trend reveals key technical indicators such as Moving Averages and the Moving Average Convergence Divergence (MACD) signaling continued downward pressure. The $21.73 support level holds substantial significance, with the potential to shape AVAX’s future price movements.
As of the time of writing, AVAX’s price has dipped by 4.67%, trading at around $23.75 over the past 24 hours. The cryptocurrency boasts a market capitalization of $9 billion and a trading volume of $331 million. Over the past day, AVAX’s market cap has shrunk by 6.37%, while its trading volume has spiked by 15.60%.
Avalanche’s recent performance underscores significant bearish strength, epitomized by numerous bearish candlesticks below the 4-hour 100-day Simple Moving Average (SMA). This pattern indicates a sustained bearish grip, suggesting further declines towards $21.75.
On the 4-hour chart, both the signal line and the MACD line of the Moving Average Convergence Divergence (MACD) are below the zero line and edging towards the oversold zone. This movement supports the likelihood of continued downward momentum in AVAX’s price.
Technical analysis on the 1-day chart further confirms a bearish trajectory toward the critical support level at $21.75, reinforced by the formation of multiple bearish candlesticks. Additionally, AVAX is trading below the 100-day SMA, indicating pervasive bearish market sentiment.
Observing the 1-day chart, it is evident that the Signal line has crossed below the MACD line, and both have recently dipped below the zero line. This configuration suggests a continued bearish trend, with the potential for further price declines.
The significance of the $21.73 support level cannot be overstated. If AVAX reaches this level, the cryptocurrency might either break through or consolidate and retrace. A successful break below could lead to further price declines, potentially driving the asset toward the $18.83 support level and beyond. Conversely, if the price consolidates and rebounds upon hitting the $21.73 support level, it might climb toward the $30.34 resistance point. Should the price break through this range, AVAX could experience further gains, testing a higher resistance level at $37.29 and potentially fostering increased bullish sentiment.
 faces bearish pressure as it approaches a key support level at $21.73, with technical indicators hinting at further declines.){kind=link}