Avalanche Price Analysis: Are AVAX sellers aiming to record the latest annual low in the coming sessions?

• Avalanche price is extremely bearish as the price continues to decline in the red zone of the Super Trend indicator.
• AVAX price trend is forming near 2022 yearly lows inside a descending triangle pattern.
• The daily RSI indicator is showing a recovery signal after breaking out of the highly oversold zone.

Avalanche is undoubtely the quickest smart contract platform in the whole blockchain industry. However, AVAX, Avalanche’s native coin, is underperforming in the cryptocurrency market. Meanwhile, Avalanche (AVAX) is strongly bearish in both the long and short term.

Buyers had a catastrophic decline after obtaining rejected near the conceptual round level of $100, driving the cryptocurrency price to a 6-month low of $21.3.

Despite the recovery in AVAX coin, price action remains inside a descending triangle pattern near its 2022 yearly lows. As a result, AVAX is trading at the $22.6 mark at the time of writing with a neutral change in prices in an intraday trading session.

The range of the triangle pattern is narrowing and the altcoin could give a bullish momentum either up or down. Thus, according to CMC, the market cap fell by 7.8% in the last 24 hours to $6.3 billion.

Trading volume shows highly volatile trading sessions for AVAX speculators. The increase in volume during the selloff indicates the strength of the bears on the altcoin. The sell-off effect can be seen in the bitcoin pair with AVAX, where the pair is down 5.2% at 0.000771 satoshis.

Avalanche price is extremely bearish as the price continues to decline in the red zone of the Super Trend indicator in terms of the daily price chart.

But RSI reflects recovery signs

The RSI indicator is showing a recovery signal after breaking out of the overbought zone. The RSI is peaking inside an upward parallel channel on the daily price chart. But ADX fell dramatically.

Conclusion

The ADX indicator is trending lower, suggesting that the sell-off may be halted near the 6-month low. But if AVAX investors fail to manage costs above the recent low, there could be a more scary sell-off.

Support level – $21 and $10

Resistance level – $40 and 55

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Ritika Sharma

With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.