The cryptocurrency market is currently experiencing a bearish trend, with coins like Avalanche (AVAX), Ethereum, Litecoin, XRP, Solana, and others all caught in this downward movement. AVAX, in particular, is facing a strong bearish move below the 100-day Moving Average (MA) and is likely to continue in this direction for the foreseeable future.
Looking at the 4-hour timeframe chart, AVAX has crossed below both the 100-day moving average and the trend line, indicating a downward trend. The MACD indicator also suggests a very strong bearish movement, with the MACD histograms trending below the MACD zero line. Both the MACD line and MACD signal line are also below the zero line, indicating a further downward movement in price.
The Relative Strength Index (RSI) on the 4-hour timeframe further supports the bearish trend, with the RSI signal line trending around the oversold zone. The alligator indicator, which is used to determine the trend of an asset, shows that both the alligator’s lip and teeth have crossed over the alligator’s jaw in a downward direction, indicating a bearish trend and a potential deeper decline in price.
Based on previous price movements, AVAX has two major resistance levels at $50 and $59.99, with a support level at $39.95. If prices break below the support level of $39.95, it could trigger a move towards the next low of $27.53. On the other hand, if the price fails to break below its previous low, it might start an upward correction towards the resistance level of $50.80. Breaking past this level could lead AVAX towards the $59.99 resistance level.
As of the time of writing, Avalanche is trading around $38, indicating a decline of 1.75% in the last 24 hours. Its market cap is down by over 16%, while its trading volume has increased significantly by nearly 250% in the past day.
It is important to note that the information provided is for educational purposes only and does not represent the opinions of NewsBTC on investment decisions. Investing in cryptocurrencies carries risks, and individuals are advised to conduct their own research before making any investment decisions. Use the information provided on this website at your own discretion and risk.
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