The price of Avalanche (AVAX) has seen a noticeable decline recently, and the market is cautiously watching its next moves. According to a recent analysis, AVAX hit a peak of $55 on December 4 but faced rejection at that level on two separate occasions. After struggling to gain momentum, it dipped below significant moving average lines. Fortunately, it managed to find support above $35, a pivotal historical price point from mid-November.
While the selling pressure appears to be easing, AVAX’s volatility remains evident. If the bears manage to breach the $35 support, we could witness a bearish trend, potentially driving the price down to $30. Conversely, should support hold, there might be a chance for AVAX to reclaim a position above $35. In a positive scenario, the cryptocurrency could see a rise to break the $42 resistance level.
Presently, AVAX is trading around $36, and the situation seems precarious. The analysis of AVAX’s performance indicates that the 21-day Simple Moving Average (SMA) has crossed below the 50-day SMA. This crossover suggests that AVAX is vulnerable to a further decline. Recent price bars have fallen back below their moving average lines, and though there’s been a appearance of doji candlesticks, indicating a potential pause, bearish momentum is still present.
What’s next for Avalanche? The price dynamics indicate that while there has been a slight recovery, the risk of a downturn remains. If the price slips below $30, it could open the floodgates to further losses, potentially reaching as low as $20. On the flip side, if the buying sentiment strengthens and AVAX can consistently trade above $35, there is an opportunity for recovery and testing higher resistance levels, including $60 and $70.
In this unpredictable market, keeping an eye on these critical support and resistance levels is essential. Each movement in price can stir emotions from excitement to anxiety. Therefore, if you’re involved with AVAX, being prepared for both potential gains and losses is vital.
As always, it’s wise to do thorough research before making any financial decisions related to cryptocurrency investments.
