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- Technical analysis of AVAX suggests a bearish sentiment, with the price dipping below key moving averages and exhibiting bearish signals on indicators like MACD and RSI.
- After the recent AVAX price fall, the key resistance levels are at $39.95, $50.80, and $59.99 respectively.
After a strong run-up earlier this year, Avalanche’s native cryptocurrency AVAX has been facing strong selling pressure over the past week trading 23% down. However, the recent bounce back in the broader crypto market has helped to abate the decline further. In the last 24 hours, the Avalanche (AVAX) price is trading 7% up at a price of $37.91 but still over a 35% discount from its 2024 high of $60.
Analyzing the 4-hour chart, AVAX has dipped below both the 100-day moving average and the trend line, indicating a potential downward trajectory in price. The MACD indicator, also on the 4-hour timeframe, reflects a strong bearish sentiment, with the MACD histograms trending below the zero line, along with both the MACD line and a signal line.
Moreover, the Relative Strength Index (RSI) on the 4-hour timeframe signals a bearish trend, as the RSI signal line hovers around the oversold zone. Despite the possibility of a short-term retracement, the prevailing indicators suggest a continued downward movement in price.
The alligator indicator serves as a potent tool for gauging asset trends. In the depicted chart, both the alligator’s lip and teeth have crossed below the alligator’s jaw, indicating a downward trend. This configuration implies a bearish outlook, signaling the potential for further price decline.
Avalanche (AVAX) Price Action Ahead
Analyzing Avalanche’s price action reveals two significant resistance levels at $50 and $59.99, along with a support level at $39.95. With Avalanche currently trending downward, breaching the $39.95 support level could precipitate a further decline towards the subsequent low at $27.53.
Conversely, if the price holds above its previous low, it may initiate an upward correction towards the $50.80 resistance level. Should it surpass this level, AVAX could extend its rally towards the $59.99 resistance level.
At the time of reporting, Avalanche is trading around $38, marking a 1.75% decline over the last 24 hours. Its market capitalization has decreased by over 16%, while trading volume has surged by nearly 250% within the same period.
The Avalanche Ecosystem Growth
To begin with, the Core Wallet stands out as an exceptional native chain wallet, boasting superior speed and cost-effectiveness compared to Metamask for Avalanche transactions. Additionally, it extends support for Bitcoin, including Avalanche bridged BTC.b, along with a host of other impressive features.
Avalanche’s architecture comprises three distinct chains, a detail often overlooked by users. These include the X-Chain tailored for exchanges, the P-Chain serving as the platform chain utilized by most subnets, and the C-Chain, an EVM-compatible chain facilitating connectivity with the broader EVM ecosystem. Notably, the launch of new subnets does not encroach upon the C-Chain’s capacity or impede EVM transactions, ensuring seamless operation, per the Crypto News Flash report.
Subnets are emerging as a pivotal feature for Avalanche, offering a notable advantage, particularly for gaming and real-world asset (RWA) chains. Leveraging subnets provides developers with the robust security of Avalanche, enabling them to concentrate on enhancing the protocol, thereby encapsulating the essence of modular blockchain innovation.
Trips 🤝 Content Creators@TripsCreators leverages an Avalanche Subnet to help creators turn their digital content and IP into secure, on-chain assets 👇 https://t.co/Sxh8PpL2R5
— Avalanche 🔺 (@avax) April 13, 2024
