Avalanche price analysis: AVAX to move down towards $11.00 as bears takeover

TL;DR Breakdown

• Avalanche price analysis suggests a downward movement to $11.00
• The closest support level lies at $11.50
• AVAX faces resistance at the $12.00 mark

The Avalanche price analysis shows that the AVAX price action has continued to consolidate at the $11.80 mark as attempts of a breakout failed.   

The broader cryptocurrency market observed a bearish market sentiment over the last 24 hours as most major cryptocurrencies recorded negative price movements. Major players include XRP and BNB, recording a 1.37 and a 0.73 percent decline, respectively.

Avalanche price analysis: AVAX struggling at $11.80

The MACD is currently bullish, as expressed in the green colour of the histogram. However, the indicator shows low bullish momentum as observed in the low height of the histogram. Moreover, the indicator’s lighter shade suggests that the bullish momentum has started to decrease as the price action consolidates around the $11.80 mark. 

The EMAs are currently trading below the mean position as net price movement over the last ten days remains negative. However, the two EMAs are moving upwards suggesting a bullish correction in the markets. On the other hand, as the two EMAs converge, the bullish momentum dies down. 

The RSI dipped briefly into the oversold region two days ago but quickly resurfaced and continued to trade in the neutral zone till press time. Now, the index is trading at the 42.58 unit level with a horizontal gradient. The indicator does not issue a signal at the moment while the low slope suggests a lack of momentum on either side suggesting low volatility across the short term. 

The Bollinger Bands were expanding to facilitate the volatile movements but narrowed as the price stabilized at the 11.80 mark. Since then, the bands started to converge as the volatility died down in the struggle for dominance. At press time, the indicator’s bottom line provides support at $11.58 while the upper limit presents a resistance level at the $12.10 mark.

Technical analyses for AVAX/USDT

Overall, the 4-hour Avalanche price analysis issues a strong sell signal, with 16 of the 26 major technical indicators supporting the bears. On the other hand, only one of the indicators supports the bulls showing little to no bullish presence in recent hours. At the same time, nine indicators sit on the fence and support neither side of the market. 

The 24-hour Avalanche price analysis shares this sentiment and also issues a sell signal with 14 indicators suggesting a downward movement against only three of the indicators suggesting an upwards movement. The analysis shows bearish dominance across the mid-term charts while significant buying pressure exists for the asset across the same timeframe. Meanwhile, nine indicators remain neutral and do not issue any signals at press time

What to expect from Avalanche price analysis?

The Avalanche price analysis shows that strong bearish momentum enabled the bears to cause a price drop to the $11.80 mark. However, the bulls found support at the level that enabled them to stabilize the price action. Regardless, either side has failed to gather momentum to initiate a rally in either direction. 

Traders should expect AVAX to observe a downward breakdown as the price falls down to the $11.00 support level. The suggestion is supported by the mid-term technicals which are highly bearish suggesting strong downward movement. AVAX can be expected to drop to $11.00 mark before stabilizing at the level.