Avalanche price analysis shows that AVAX closed the week at $28.92 and is currently down by 86.84 percent. The cryptocurrency has not been able to break out of the descending triangle it has been trading in for the past few days.The market capitalization for AVAX is currently at $7,739,747,117, and the trading volume is at $863,120,215. Avalanche prices are currently trading near the support at $28.0. If the price breaks below this level, a drop towards $25.17 is imminent. On the other hand, if the bulls can push the price above $31.79, it can recover to the $30.0 handle.
Avalanche price analysis in the 1-day time frame: Selling pressure intensifies
Avalanche price analysis on a daily timeframe shows the market is facing extreme selling pressure. The price has declined by 6.84 percent as it trades in a range-bound of $26.57 to $33.96.The current sell-off in the market has been attributed to the rise of the market volatility as the Bollinger bands are seen to be wide. This indicates the market has become very dynamic, and the trend is expected to continue in the near term.
The Relative Strength Index is currently at 38.94, and it is seen declining further. This indicates that the selling pressure is likely to continue in the market. The MACD is also seen bearishly diverging as the signal line crossed below the MACD line. The EMAs are also bearishly crossed, which is a sign that the market is in a downtrend.
All the indicators in the 1-day timeframe are giving bearish signals, which indicates that the market is likely to continue its downward trend.
Avalanche price analysis in the 4-hour time frame: no signs of recovery
The 4-hour timeframe for AVAX shows that the market has been in a downtrend since the beginning of this month. The market is currently facing selling pressure as it trades near the support at $28.79.The Relative Strength Index is currently at 39.02, and it is seen declining further. This indicates that the selling pressure is likely to continue in the market. The MACD is also seen bearishly diverging as the signal line crossed below the MACD line. The EMAs are also bearishly crossed, which is a sign that the market is in a downtrend.
The market volatility has however decreased in the last 4 hours as indicated by the converging Bollinger bands. This indicates that the market is consolidating, and a breakout is likely to occur soon. Moreover, the ATR indicator is signaling a decrease in the market volatility, which is a sign that the market is ready for a breakout. The overall market sentiment is in favor of the bears as further declines are likely to befall AVAX prices.
Avalanche price analysis conclusion
Inclusively, Avalance price analysis shows that AVAX is in a downtrend in the short term. The market is facing selling pressure as indicated by the various technical indicators. The bears are pushing for a further decline in prices as the market volatility decreases. The market is expected to make a breakout soon, which can push the price lower.
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Source: https://www.cryptopolitan.com/avalanche-price-analysis-2022-05-20/