In the crypto market, fortunes can be made or lost in the blink of an eye, and in it, Avalanche (AVAX) is currently standing at a critical juncture. Many traders are wondering what’s next for AVAX as its price moves towards the $35 support.
Avalanche (AVAX) coin has seen good momentum from October 2023 till March 2024, reaching up to $65.39. However, post that time it started losing some interest among bulls, and in September 2024, the price started to drop.
AVAX tried to regain the losses, but it kept creating lower highs, which resulted in a more bearish trend.
Looking at the weekly chart, since September 2023, AVAX has been moving upward, following the rising trend line. The price went above the $48 resistance on two occasions but was unable to hold.
Now, the AVAX price is stuck between the support trend line and the $48 resistance. It recently dropped by 36% from its second high and is now trading at the $35 mark. This is now a support level. If it loses this support, it could drop even further.
Some of the technical indicators, such as the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD), are also showing signs of a possible downtrend. The RSI is just near the 50 level, while the MACD has just crossed to the negative side. This means that the price might keep dropping in the short term.
The chart is also showing a descending triangle, which is a typical bearish pattern. However, the bullish divergences in both the RSI and MACD hint that a breakout could occur.
If AVAX breaks above the trend line, the price could rise toward the $48 resistance level. But if it falls below the triangle, a 20% drop could send the price tumbling back toward the rising support trend line.
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