Despite the growing bullish sentiment in the crypto market, Avalanche (AVAX) has experienced a steady decline in value, marking a significant shift in the altcoin’s performance. Recently, Avalanche lost its position as the 11th-largest cryptocurrency to Chainlink (LINK) after recording a double-digit weekly loss. This decline underscores the increasing bearish sentiment impacting the broader cryptocurrency space.
As of now, Avalanche has recorded a 1.89% drop in the past 24 hours, with a trading volume of $596.71 million. Over the past week, the altcoin has lost 10.89%, and it’s down 6.35% for the year. Currently ranked 12th in the global cryptocurrency market with a market cap of $14.528 billion, AVAX’s price chart suggests a potential continued downtrend.
Short-Term Avalanche Price Outlook: Bearish Momentum Intensifies
The Relative Strength Index (RSI) for AVAX remains in a consolidated price action, lingering below the neutral point, indicating a lack of bullish momentum. The RSI’s trendline consistently acts as resistance, adding pressure to any price recovery. Meanwhile, the Simple Moving Average (SMA) indicator shows a pronounced bearish curve on the daily chart, signaling that the downtrend may persist in the near term.
Could AVAX Price Retest $50? A Possibility Amidst Bearish Sentiment
Looking ahead, the outlook for AVAX largely depends on whether the bulls can regain control. If the price manages to break through the $39.30 resistance level and sustain momentum, it could potentially reach higher resistance near $48.45.
However, if the bearish influence dominates, the price could test its support at $31.50, with the possibility of dipping even lower to $24.30, should the market sentiment worsen. As Avalanche navigates this volatile phase, its future direction hinges on how quickly the market dynamics shift in favor of either the bulls or bears.
Also Read: Avalanche (AVAX) Set for Breakout: Can It Surge to $60 in the Upcoming Rally? – Analyst
Will AVAX continue its downward spiral, or is a recovery on the horizon? Only time will tell, but investors should closely monitor these key levels for potential signs of trend reversal.
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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