The cryptocurrency market is currently experiencing a bearish trend, with coins like Avalanche (AVAX), Ethereum, Litecoin, XRP, Solana, and others all being affected. Specifically looking at AVAX, the price is currently on a strong bearish move below the 100-day Moving Average (MA), indicating a downward trend that may persist for some time before any potential retracement.
Upon observing the chart from the 4-hour timeframe, it is evident that AVAX has crossed below both the 100-day moving average and the trend line, further confirming the bearish movement. The MACD indicator on the 4-hour timeframe is also signaling a very strong bearish momentum, with the MACD histograms trending below the zero line and both the MACD line and MACD signal line below the zero line as well.
Based on the formation of the MACD indicator and the Relative Strength Index (RSI) also suggesting a bearish trend, it is likely that the price of AVAX will continue to decline. Currently, the price is hovering around $38, with major resistance levels at $50 and $59.99, and a support level at $39.95. If prices break below the support level, a move towards the next low of $27.53 could be triggered. Conversely, if the price fails to break below the previous low, an upward correction towards the resistance levels could occur.
As of the time of writing, Avalanche (AVAX) has seen a decline of 1.75% in the last 24 hours, with its market cap down by over 16%. However, its trading volume has increased significantly by nearly 250% in the past day, indicating heightened interest and activity in the market.
The bearish trend in the cryptocurrency market is impacting coins like Avalanche (AVAX), with technical indicators pointing towards a further decline in price. Traders and investors are advised to conduct their own research and consider the risks involved in cryptocurrency investments before making any decisions.
Please note that the information provided in this article is for educational purposes only and does not constitute financial advice. Investing in cryptocurrencies carries inherent risks, and individuals should carefully assess their risk tolerance and investment goals before participating in the market.