Cryptocurrency prices are fluctuating significantly due to increased buying and selling activities in the market. Notably, AVAX is consistently undergoing corrections, indicating a prevailing bearish sentiment.
The Avalanche (AVAX) price went through a phase of stability, trading between $45 and $50. However, the market lost momentum, leading to a breakdown. Following this, AVAX entered a consolidated range of $40.01 to $42.50. Despite attempts to break out, the bears held strong, causing a correction of over 25%. Bulls made subsequent efforts to break out but faced resistance.
After multiple attempts, the bulls successfully broke out of the range, and the price entered a consolidated phase between $35 and $40.01. However, the recent loss of momentum among bulls resulted in a breakdown in the chart.
Avalanche (AVAX) Price Analysis: MACD Signals Selling Pressure
The Moving Average Convergence Divergence (MACD) exhibits a consistent red histogram, pointing towards increased selling pressure in the cryptocurrency market. The averages indicate a bearish trend, suggesting a continued correction in the AVAX price before a potential rebound.
If the market successfully propels the AVAX price above the $35 resistance level, it could signal a resurgence of bullish momentum with a potential test of the upper resistance at $40.01. Sustaining at this level might lead to further testing of the resistance at $42.50 in the upcoming week.
Conversely, a lack of upward momentum could result in a decline, prompting a test of the $30 support level. If bearish forces persist, the AVAX price might target its lower support at $27.46 in the near future.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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