In the bustling world of cryptocurrency, AVAX, the native utility token of the Avalanche blockchain, has been pulling notable attention. As of late, AVAX sits comfortably at rank 12 in terms of market cap. Its total supply, an impressive 440,043,419 AVAX, boasts a total trading volume exceeding $396,250,098 within the past 24 hours. Yet, following a recent pullback settling at $36.15, AVAX’s movement has been seemingly on a downward path.
The general ambiance in the cryptocurrency market is currently doused in bearish hues, which undoubtedly cast a shadow on the performance of AVAX. Resonations of the downturn ripple through the market as the price of AVAX dips beneath the surface of the 100-day Simple Moving Average (SMA). This downward trajectory looks to be largely unstopped in the coming days. A recent check puts the price of AVAX at about $33.52, translating to a 0.22% decrease in the last 24 hours.
To gain some footing on the future course of AVAX, a pool of indicators can be mobilized to dissect the prevailing chart patterns. The 4-Day MACD reveals a worrying trend. Deeper than surface-level analysis uncovers the MACD histograms trending below the zero line. A whispering worry is the crossing of the MACD line and the Signal line below the MACD zero line, validating the fears of a continuous downward march.
Alongside the MACD, The Relative Strength Index (RSI) gives off signs of a looming downward stretch. The RSI signal line has dipped its toes above the 50% level only to recoil back under. This indicates that, despite resistance, the power of sellers is maintaining an iron grip on the market, significantly eclipsing the vigor of buyers.
Yet another guide on this potentially perilous path is the Alligator Indicator. A recent glimpse of the indicator from a 4-hour perspective reveals AVAX’s struggle to stay afloat above Alligator lines. AVAX finds itself beneath the menacing jaws of the alligator as the lip and teeth cross above the jaw line. Unsuccessful attempts to break free insinuate a downward trip may be in store for AVAX.
Observing the recent downward strides, AVAX, like an athlete adjusting strategy mid-race, seems to have formed two resistance levels at $39.94 and $36.15 and a support line at $30.34. AVAX appears to be pacing towards this support, and if it manages to vault above this level, the descent might pick up speed, possibly recording a new low.
However, the potential of an unexpected twist lurks in the shadows. Should the price fail to break past this support, it could spring back to life and start an upward journey back to its previous resistance level of $36.15. If AVAX manages to shatter this resistance level, we could be witnessing a rally to the $39.94 resistance level.
As it stands, AVAX is trading at $33.44 on the 1-day chart. Regardless of the path it takes, every turn and twist in the journey of this utility token is closely watched by investors and interested parties alike. In the tumultuous and unpredictable nature of the digital currency market, one day at a time is all investors can predict.
