Avalanche (AVAX) continues to struggle under bearish pressure, with analysts predicting further declines. Earlier in March, a 10% price bounce was expected before the downtrend resumed, and this forecast materialized. A subsequent analysis projected a drop to $14, with AVAX reaching $15.2 shortly after.
Persistent Downtrend Amid Strong Resistance
Despite intermittent price rebounds, AVAX remains in a clear downtrend. The demand has not been sufficient to shift momentum, and multiple resistance zones loom overhead. Swing traders looking for short entries or opting to stay on the sidelines may find the coming days crucial in assessing market movements.
By February 24, AVAX had erased the entirety of its November rally. Since then, it has shed an additional 14%, reinforcing the sustained bearish sentiment. The high trading volume during this decline further underscores the strong selling pressure.
Technical Indicators Signal Further Losses
The 20-day and 50-day moving averages (DMAs) indicate continued downward momentum, with the 20 DMA acting as a dynamic resistance over the past two weeks. As of the latest data, this moving average stands at $20.29, highlighting the difficulty for AVAX to break above it.
The $20-$21.7 range has emerged as a significant resistance zone, serving as a bearish order block. The Fixed Range Volume Profile tool supports this analysis, showing a high-volume node between $20.5 and $22.1, reinforcing sellers’ dominance. The Point of Control (PoC) stands at $26.36, a level unlikely to be reached in the near term.
Key Levels to Watch for Traders
With the daily market structure remaining bearish, the most recent lower high was established at $24.95. A daily close above this level is required to signal a potential trend reversal, but current momentum suggests otherwise.
Fibonacci retracement and extension levels further point to $14.46 as the next target. Traders looking for short opportunities may consider entering around $21 and aiming for this support level, while a move above $22.15 would invalidate the bearish outlook.
Also Read: Avalanche (AVAX) Price Forecast: Is a Reversal Near or More Losses Ahead?
For now, Avalanche remains locked in a downward spiral, and traders should brace for further losses before any potential recovery.
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.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
