After confirming a bearish signal, the AVAX price is teetering on the edge of a 25% decline. This development has sparked concerns among investors about the crypto asset’s near-term outlook. The confirmation of the bearish signal suggests that the downward trend could continue, potentially leading to a significant drop in the price of Avalanche.
The price of AVAX is up 2.8% in the last 24 hours and is trading at $23.35. Nevertheless, a key technical analysis indicator has revealed Avalanche price is likely to go for further downside movement, potentially up to $17.5
Bearish Signal Confirms AVAX Price Crash Is Imminent
The Fisher Transform Indicator helps highlight extreme price movements, which can signal potential price reversals. According to this indicator, AVAX price just turned super bearish, hinting at a potential crush to $17.
Avalanche has been experiencing volatility in recent weeks. After a notable liquidity sweep around $34, the price faced a sharp rejection, leading to a current test of key support of around $24.80. This critical support level is being closely monitored by analysts and traders alike, as it could determine the next major move for AVAX.
The bearish signal confirmation has heightened fears of a potential 25% crash, which would see the price plummet to around $17.5. This scenario is particularly concerning, given the broader market conditions and the recent performance of AVAX. The crypto asset has been oscillating around the $24 mark, struggling to break above key resistance levels.
AVAX Technical Analysis Reveals Potential Bounce After Crash
AVAX price forecast shows the asset is currently trading below its 200-day Simple Moving Average (SMA) of $26.81, which is a bearish indicator. Additionally, the Relative Strength Index (RSI) hovers around 37.54, close to the oversold region, suggesting weak bearish momentum. If the RSI drops below 30, it could signal further downside potential.
Despite the bearish outlook, some analysts remain optimistic about a possible bullish rebound. They point to the potential for a breakout above $28, which could trigger a rally toward the $40 mark. This optimistic scenario hinges on AVAX maintaining its current support level and gaining enough buying pressure to overcome the bearish momentum.
The broader cryptocurrency market has also been experiencing turbulence, with many assets facing similar bearish pressures. However, Avalanche’s unique position as a layer-1, proof-of-stake blockchain with high transaction throughput and fast finality times gives it a competitive edge. These features have made AVAX a favorite among developers and investors, contributing to its resilience in market downturns.
In the short term, traders are advised to monitor key support and resistance levels closely. A breakdown below $24.80 could lead to further declines, while a breakout above $28 could signal a bullish reversal. Volume spikes and shifts in the RSI will be crucial indicators, as they could provide early signals of the next major move for AVAX.
Frequently Asked Questions (FAQs)
The AVAX price has confirmed a bearish signal, as seen in technical indicators like the Fisher Transform Indicator. This signal suggests that the asset could face a further 25% drop, with potential support around $17.5 if current support levels are breached.
The Fisher Transform Indicator highlights extreme price movements and potential reversals. It recently turned bearish for AVAX, suggesting a higher likelihood of downward movement in the near term, possibly leading to a drop toward $17.
Yes, while the bearish signal points to a potential decline, a rebound is possible if AVAX can hold its support level and attract enough buying pressure. A breakout above $28 could lead to a bullish rally, potentially reaching $40.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/avax-price-risks-25-crash-following-bearish-signal-confirmation/
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