AVAX, the native utility token of the Avalanche blockchain, is currently ranked 12th by market cap. With a total supply of 440,043,419 AVAX and a total trading volume of over $396,250,098 in the last 24 hours, AVAX has been facing a downward trend since its recent pullback at $36.15. The general cryptocurrency market is currently bearish, causing AVAX to drop below the 100-day Simple Moving Average (SMA). As of the time of writing, AVAX was trading around $33.52, marking a decrease of about 0.22% in the last 24 hours.
Technical Indicators
When analyzing the future price movement of AVAX, several technical indicators can be used to examine the chart.
4-Day MACD
A technical look at the MACD indicator shows that the MACD histograms are trending below the zero line on the 4-hour timeframe. Both the MACD line and the Signal line crossed each other while trending below the MACD zero line, indicating a continuous downside movement.
4-Day RSI
The Relative Strength Index (RSI) signal line has moved above the 50% level and then dropped below it, suggesting a continuation of the downward movement. This indicates that sellers are currently overpowering the strength of buyers in the market.
Alligator Indicator
Analyzing the alligator indicator on the 4-hour timeframe shows that AVAX is trading below the alligator lines. The alligator lip and teeth have both crossed above the alligator jaw, indicating a bearish trend. Despite attempts to move above the alligator lines, the price has failed, suggesting a potential further downward movement.
Price Levels
From the previous downward movement, AVAX has formed two resistance levels of $39.94 and $36.15, as well as a support level of $30.34. Currently, AVAX is approaching the support level, and if it breaks below this level, the price might drop further to create a new low. On the other hand, if the price fails to break below the support level, it could reverse and begin an upward movement towards the previous resistance level of $36.15. If AVAX manages to break above this resistance level, the price could potentially move towards testing the $39.94 resistance level.
The technical indicators suggest a bearish trend for AVAX in the near future. Traders and investors should closely monitor the support and resistance levels mentioned above to make informed decisions regarding their investments in AVAX.
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