Will Avalanche Price Test New Lows as Bears Dominate?

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As a seasoned crypto investor with scars from more than a few market corrections, I must admit that the current state of Avalanche (AVAX) has me somewhat concerned. The bearish phase we are experiencing is nothing new to us veterans, but the intensity of this downward trend has me on edge.

At present, the cryptocurrency Avalanche (AVAX) is going through a bearish period, as powerful market conditions are causing its value to decrease. Lately, these price changes have exacerbated this downtrend, resulting in bears having significant control over the trading scene.

After experiencing a significant market downturn, I’ve noticed that my investment in AVAX has dropped significantly due to the continuous turbulence within the crypto market. As the bearish trend continues, I find myself keeping a close eye on AVAX, hoping for any signs that could indicate stability.

Today’s cryptocurrency markets displayed a blend of movements. Bitcoin surged past $68,000 as global investors kept a close watch, whereas Ethereum persisted in its descent. Simultaneously, Solana (SOL) and Ripple (XRP) mirrored Bitcoin’s upward trajectory, picking up momentum and syncing with the general upturn in the market.

Avalanche Price Dips; Will Bears Push it Towards $20?

Currently, Avalanche’s price stands at approximately $26.73, marking a 3% drop within the last 24 hours, and a 7% decline in the previous seven days.

The key resistance level stands at $27, a critical threshold for AVAX’s price movement. A successful breakout above this resistance, especially with increased trading volume, could set the stage for a rise toward the $30 target. 

How Low Can AVAX Price Go?

For the Avalanche price, the day-to-day technical signs point towards a pessimistic trend. The Relative Strength Index (RSI), currently at 32, is approaching oversold territory, which suggests potential increased selling activity.

Moreover, the MACD (Moving Average Convergence Divergence) indicates a bearish trend as the MACD line is at -0.07, while the signal line remains at -0.35 above it. The histogram suggests that the selling pressure could continue in the near future since it demonstrates negative momentum.

The significant accumulation of stablecoins worth over 5 million dollars by whales has been observed, with this increase likely tied to the unpredictable nature of Avalanche’s prices. Over the past few months, as AVAX’s price has gone up and down, the activity of these whales has grown steadily, suggesting potential strategic maneuvers within the market. This pattern indicates ongoing changes in the behavior of major holders, who are amassing more stablecoins amidst market turbulence.

If the demand from bears continues to increase for the AVAX price, it may lead to continued decreases, possibly dropping towards the $20 level. This could amplify market volatility, causing adjustments in investment tactics among both regular investors and large-scale traders (whales).

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2024-10-25 21:23