Avalanche (AVAX) has been facing persistent bearish pressure, leaving investors uncertain about its next move. After a series of declines, AVAX is currently trading around $18.70, struggling to regain momentum. With traders closely watching key technical indicators, the big question remains: Is this a prime buying opportunity, or should investors brace for further losses?
AVAX Price Action and Key Technical Indicators
AVAX has been on a prolonged downward trajectory, hovering near the $18.70 support level. The Heikin Ashi chart suggests that selling pressure remains dominant, with continuous red candles signaling bearish momentum. However, the appearance of small-bodied candles with wicks hints at potential indecision among traders, possibly indicating an upcoming reversal attempt.
RSI: Oversold Territory Approaching?
The Relative Strength Index (RSI) is currently at 35.77, nearing the oversold zone but not yet confirming a full reversal. Generally, an RSI below 30 is considered oversold, often sparking buying interest. While AVAX is approaching this level, it hasn’t reached extreme lows that would typically signal a strong bounce. For a bullish recovery, AVAX needs an RSI push above 40 to indicate strengthening momentum.
MACD: Signs of Weakening Bearish Pressure?
The MACD indicator shows a slight improvement, but it remains in bearish territory. The MACD line is at -2.12, just below the signal line at -2.11. A bullish crossover would be a strong reversal signal, but until that happens, further downside remains a possibility.
Key Support and Resistance Levels
- Support: AVAX is testing the critical $18.50-$18.70 zone. Holding this level could lead to a relief bounce.
- Resistance: The next resistance lies between $20.50 and $21.00. A breakout above $21.00 could signal a bullish reversal.
- Downside Risk: If sellers push AVAX below $18.50, the next support is at $16.80, with further downside potential to $15.00.
Also Read: VanEck Files for Avalanche ETF: Can AVAX Rebound After Market Crash?
AVAX Price Outlook: Rebound or Further Decline?
While some stabilization signs are emerging, AVAX remains in a bearish phase. If buyers defend the $18.50 support, a short-term recovery toward $21.00 is possible. However, failure to hold this level could trigger further declines toward $16.80 or lower. Traders should watch these critical levels closely before making any moves.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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