11 May 2024
AVAX is the native utility token of the Avalanche blockchain. The token 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. Since its recent pullback at $36.15, AVAX has continued to move downward.
Currently, the general cryptocurrency market is bearish. This has led to the price of AVAX dropping below the 100-day Simple Moving Average (SMA) and the price might continue to drop in the next couple of days. As of the time of writing, the price of AVAX was trading around $33.52 and about 0.22% down in the last 24 hours.
Technical Indicators Point Toward A Sustained Downtrend For AVAX
To figure out where the AVAX price might be headed next, the following indicators can be used to examine the chart.
4-Day MACD: A technical look at the MACD indicator from the 4-hour timeframe, the MACD histograms are trending below the zero line, and both the MACD line and the Signal line crossed each other while trending below the MACD zero line, indicating a continuous movement on the downside. This can be seen in the below image.
4-Day RSI: The formation of the Relative Strength Index (RSI) in the above image also suggests a downward continuation movement as the RSI signal line is seen to have moved above the 50% level and then dropped below it. This suggests that sellers are still very much active in the market therefore overpowering the strength of buyers.
Alligator Indicator: A look at the alligator indicator from the 4-hour time frame shows that AVAX is trading below the alligator lines as the alligator lip and teeth have both successfully crossed above the alligator jaw. It can also be seen that the price tried to move above the alligator lines but failed to do so, suggesting that the price might continue to move in its downward direction.
The Coin Could Form A New Low
Conclusively, from the previous downward movement, AVAX has formed two resistance levels of $39.94 and $36.15 and a support level of $30.34. Currently, AVAX is moving toward this support level and if it breaks above this level, the price might drop even further to create a new low.
On the contrary, if the price fails to break above this support, it will reverse and start an upward movement toward its previous resistance level of $36.15. Should AVAX manage to break above this resistance level, the price might move further to test the $39.94 resistance level.