Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
Avalanche (AVAX) price has been on a downtrend after facing rejection from $16 and has broken below the $10 support level. The cryptocurrency started to surge during the middle of June, rising from the low of $11.30. The bullish move was halted as the price faced strong rejection from $16, and the candle closed below $15.
AVAX’s price declined firmly and broke the support level from where the bullish rally commenced, which is $11.30. The cryptocurrency price has broken below $10 and formed support at $8.70.
The last two candles closed bullish, indicating a rise in the participation of bulls. However, the current candle has turned bearish after breaking the previous candle’s high.
If bulls can push the price above $9.50, AVAX price might retest the next resistance level of $10.15. On the other hand, if the price breaks below $8.70, it might melt toward the next support level of $7.30. For the price to gain bullish solid momentum and retest its annual high, it must rise above $18.
Network Activity of Avalanche
In the past 90 days, the daily active addresses of Avalanche have declined nearly 66.2% to 29,040. During the start of July, the daily active addresses were around 85,000. Since then, there has been a notable fall.
The daily transaction also fell 60.2% in the last 90 days, coming down to 187,757. On July 14, the daily transactions were around 500,000. The total value locked has also declined 29.7% in the last 90 days, amounting to $482.9 Million.
The market capitalization of Avalanche has increased by 0.04% to $3,196,386,347 at the time of writing. The 24-hour trading volume has declined by 16.94%.
Will AVAX Price Retest $10 Level?
The cryptocurrency price has dropped below 20, 50, 100, and 200-day exponential moving averages, indicating bearish momentum. The Chaikin money flow score has dropped below the 0 mark and currently trades at -0.08, suggesting weakness and capital outflow from the market.
However, the relative strength index has witnessed a surge from the oversold zone and currently trades at 37.66, implying a rise in the participation of bulls. The Bollinger bands have slightly contracted, indicating a decrease in volatility.
The long-short ratio is 0.93, with 48.29% longs and 51.71% shorts, indicating a higher number of positions from the selling side in the last 24 hours.
Conclusion
The overall market structure and price action of Avalanche are still bearish. However, the price shows a rise in the participation of bulls.
Technical Levels
Support Levels: $8.70 and $7.30
Resistance Levels: $9.50 and $10.15
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/09/27/avalanche-price-prediction-significant-drop-in-active-addresses/