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AVAX In focus: technical signals point to bearish outlook

source-logo  invezz.com 19 April 2024 17:25, UTC

The cryptocurrency market at the moment is undergoing a global bearish mood. Avalanche (AVAX) is one of the coins that suffered a decline after seeing a surge because of this downward trend.

AVAX shows an equal decrease in its value on the market which is generally caused due to depressed atmosphere and negative global trends.

At the moment, AVAX is worth approximately $35. Nevertheless, there is a minor upward movement contrasted with the 25% decrease during the last week which serves as an indicator of the prevailing bearish trend.

The latest AVAX prices have been under scrutiny due to the key role played by the technical indicators in determining its future trends.

Technical indicators and market analysis

A highly technical pattern on the AVAX trading chart is a Death Cross formation where the 50-day Exponential Moving Average (EMA) has come below the 200-day EMA on the 4-hour price chart.

This playbook pattern is mainly treated as a bad sign by the investors and hence there is a chance of the price going even lower.

Despite this warning signal of a Death Cross, some technical indicators point to some mixed outlook for AVAX’s future.

The Relative Strength Index (RSI) is inclined upwards with a rating of 49, implying the gradual weakening of the bear’s dominance.

In the derivatives market, the price of AVAX has been volatile as the activities in futures trading have momentous influence, especially the noticeable ones of long liquidations in the recent one.

In that case, fundamentally such a speculative nature of trading plays a vital role in the AVAX market which is responsible for this general gloomy feeling in the market.

Market outlook and sentiment analysis

Looking forward, AVAX is seeing a range of support and resistance levels that can either give a hint about its future trend development or even reverse its entire movement.

Falling below the support of $39 may cause the price to move downward to a lower level of $28. Otherwise, if this support zone is not overshot we could expect a reverse correction toward the resistance level of $50.

With the ongoing selling pressure, technical analysts see an opportunity for a price trend reversal and possibly a rally if broader market conditions recover.

But, the sentiment overall is slightly optimistic looking at the flip side, a fall in smart contract activity on the Avalanche platform and a possible slowdown in developmental initiatives soon.

It is difficult to accurately predict the AVAX price in the current market turmoil, but investors are keeping an eye on key support and resistance levels for potential future price movements.

Final wrap

In summary, at the moment, the AVAX outlook seems to be bearish but some analysts are cautiously optimistic that a comeback is to be expected soon.

The interaction between technical indicators, market dynamics, and investor attitude is what will establish the price direction of AVAX that will subsequently determine the future of the cryptocurrency.

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