Avalanche (AVAX) fell below the moving average lines after becoming trapped between them.
Avalanche price long-term analysis: bearish
Since September 25, the altcoin has traded below the 21-day SMA resistance but above the 50-day SMA support. On October 10, the bearish trend broke below the 50-day SMA support, dropping to a low of $9.65.
However, the bulls took advantage of the lows and pushed the price higher. The cryptocurrency price fell beyond the projected threshold of $19.30, or the 2.618 Fibonacci extension. AVAX has reached the bottom of the chart, entering the market’s oversold territory. AVAX will rise if buyers appear in the oversold market. At the time of writing, AVAX is valued at $22.62.
Technical Indicators:
Avalanche Indicator Analysis
The price bars are below the upward-sloping moving average lines. Despite the recent decline, the 21-day SMA remains above the 50-day SMA. On the 4-hour chart, the price bars are below the downward-sloping moving average lines. The altcoin has dropped significantly to the bottom of the chart.
What is the next direction for Avalanche?
AVAX’s selling pressure has eased as it has rebounded above the $20 support level. The altcoin is recovering above the $20 support but remains below the moving average lines. The altcoin will rise if the current support holds and buyers push the price above the moving average lines. Meanwhile, AVAX is moving towards the moving average lines.
Disclaimer. This analysis and forecast are the personal opinions of the author. The data provided is collected by the author and is not sponsored by any company or token developer. This is not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coinidol.com. Readers should do their research before investing in funds.