HomeCryptoAVAX Price Analysis: When Will Its Bearish Streak End?

AVAX Price Analysis: When Will Its Bearish Streak End?

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AVAX price is trading at $31.89 at the time of writing and showing daily losses of 4.1% and weekly losses of 13.8%

In this way, AVAX prolongs its fall, which had been happening since April 6, when it apparently began to experience large capitulations from investors who bought at lower levels.

So at the current times and levels this cryptocurrency is trading in a decisive range in which the fall could be prolonged or a trend change could occur.

Regarding capitalizations, it is apparently also related to the last Durango update of the Avalanche network. While that update generated excitement, it also provided a great opportunity for investors to take profits from the yearly high of $61.

This update brought with it an improvement in the interoperability and efficiency of this Blockchain. But as we see in the charts, it was not enough for AVAX to not trade in a prolonged downtrend today.

At this point it should also be emphasized that traditionally updates do not have an immediate effect on your network, although they generate a lot of excitement before them.

It should also be noted that, despite the current panorama, in recent weeks daily transactions on this network have remained stable, with a minimal reduction in its use.

Similarly, Avalanche experiences a drop in active addresses with an intraday value of 41 thousand.

While AVAX’s social mentions have also decreased in recent weeks and shows a large drop in its popularity.

AVAX Chart Analysis: Bearish Trend

AVAX price is trading below all exponential moving averages. Which shows the current strong bearish outlook and is confirmed by the RSI at 34, approaching oversold.

AVAX price is trading on a descending line. Fountain: TradingView.

However, the bullish outlook suggests that the price needs to reclaim the 20 EMA or $32 EMA to start breaking out of the downtrend line. As AVAX recovers, it would encounter a strong hurdle at $33.9 from where it already corrected.

The bearish trend would be invalidated if the price recovers $35.6, where there was a large capitulation. But We could only talk about the beginning of an upward trend if the price trades above 40 USD soon.

On the bearish outlook, AVAX could see a continuation of the decline if it loses the $31 support. Then the fall could extend to $29 and if this floor is breached, to $27.

One consolation is that the price is trading in an increasingly narrower range, marking a descending triangle that could mark the end of the fall in the coming days. But if these levels are broken they could make the previously mentioned supports a reality.

The crypto market retreats

Today, the general context of the crypto market is bearish and affects the price of AVAX. However, there is an important element that many analysts overlook. The price of Bitcoin has rebounded in recent days at levels above 60,000 USDwhich is quite positive and demonstrates the current strength of the great cryptocurrency.

So as Bitcoin volatility decreases and remains at current levels, it is bullish and we could expect a rally.

Although not all analysts agree with this perspective and see a fairly bearish scenario if the price loses $60,000 in the coming days.

Furthermore, it should be noted that this context is favorable for traders who benefit from low volatility.

Another important perspective to keep in mind is that the capitalization of altcoins is in what many analysts call “disbelief.” That is, investors are reluctant to enter even though the market offers some positive signals.

Eventually, such disbelief could translate into a general rise in the entire crypto market.

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