AVAX Price Risks 25% Crash Following Bearish Signal Confirmation

As a seasoned researcher with years of experience navigating the tumultuous waters of the cryptocurrency market, I can’t help but feel a sense of deja vu when confronted with the current state of Avalanche (AVAX). The bearish signal and potential 25% decline have sent shivers down the spines of even the most hardened investors.


Following the detection of a bearish indicator, the value of AVAX is precariously close to a 25% decrease, prompting worries among investors regarding its short-term prospects. The emergence of this bearish signal implies that the negative trend might persist, possibly causing a substantial reduction in the cost of Avalanche.

In the past 24 hours, AVAX’s value has increased by 2.8% and is currently at $23.35. However, a significant technical analysis signal suggests that Avalanche’s price might continue to drop, with a possible downward movement reaching around $17.50.

AVAX Price Risks 25% Crash Following Bearish Signal Confirmation

Bearish Signal Confirms AVAX Price Crash Is Imminent

As an analyst, I’ve been observing the market trends and, based on the Fisher Transform Indicator, I noticed a significant shift in the price movement of AVAX. This indicator is known for underscoring extreme price fluctuations, and it appears that these fluctuations have turned decidedly bearish. This could potentially signal a downturn towards $17. It’s important to remember that while this is a suggestion based on technical analysis, it doesn’t guarantee future market behavior. Always do your own research and consider multiple factors before making investment decisions.

Over the past few weeks, I’ve noticed some volatility in the price movements of Avalanche (AVAX). Following a significant liquidity event at approximately $34, there was a sharp rejection in the price, which now finds us testing a crucial support level around $24.80. This key support is under close scrutiny by analysts and traders alike, as it may signal the direction of the next major trend for AVAX.

AVAX Price Risks 25% Crash Following Bearish Signal Confirmation

The strengthening bearish signal suggests growing worries about a possible 25% drop in AVAX’s value, potentially taking it down to roughly $17.5. This prospect is troubling considering the present market climate and AVAX’s recent performance. Notably, AVAX has been fluctuating near the $24 level, finding it difficult to surpass significant resistance points.

AVAX Technical Analysis Reveals Potential Bounce After Crash

The current price of AVAX is lower than its 200-day moving average of $26.81, which is a sign that the market may be headed down. Furthermore, the Relative Strength Index (RSI) is currently around 37.54, indicating a weakening bearish trend and approaching the oversold zone. If the RSI falls below 30, it might indicate more potential for price decreases.

Even though some forecasts predict a downturn, certain analysts stay hopeful about a potential upturn. They suggest that if the price surpasses $28, it might initiate an upward trend aiming for $40. This optimistic view depends on AVAX holding its current support and building enough purchasing power to counteract the bearish influence.

AVAX Price Risks 25% Crash Following Bearish Signal Confirmation

Just like other cryptocurrencies, the broader market is facing turbulence due to bearish pressures. But Avalanche stands out as a layer-1 blockchain that offers high transaction speed, quick finality times, and operates on a proof-of-stake system. This combination makes it attractive to developers and investors, giving Avalanche an edge during market slumps, as seen by its resilience in such conditions.

For the near future, it’s recommended that traders keep a close eye on significant support and resistance levels associated with AVAX. A drop below $24.80 might trigger additional decreases, whereas a surge above $28 may indicate a bullish turnaround. Pay attention to volume surges and changes in the RSI as they could serve as early warning signs for the next major direction of AVAX’s price movement.

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2024-11-04 19:38