Avalanche (AVAX) has had a bearish week where several price bottoms have been lost. However, AVAX is up 1.5% in the past 24 hours, indicating a sideways trading session. The technical analysis indicates that bears are still in control of AVAX, with reduced demand and accumulation.
Buyers have lost interest due to previous bearish influences. Bitcoin price was indecisive and lost the $27,000 price zone. Major altcoins have followed this trend. While BTC has shown some recovery, overall market weakness has affected buyer sentiment in the altcoin market.
AVAX is currently trading near a critical support level, and further selling pressure could lead to significant value loss in upcoming trading sessions. Buyers have to step in to get the price fixed.
AVAX’s market cap has also declined, indicating greater selling power on the chart.
Avalanche Price Analysis: One Day Chart
At the time of writing, AVAX cost $15.40. After a modest recovery, AVAX has crossed the $15 threshold and is now near the $14 critical support level. The altcoin is facing resistance at $16, and if it manages to surpass this level, it could possibly reaching $18 and then $20.
Crossing $16 would be a sign of more strength for the bulls. Conversely, a drop from the current level would push the coin below $15 and eventually to $14, strengthening the bears.
With a slight increase in demand, AVAX may make an attempt to cross the $16 threshold. Trading volume for AVAX in the previous session was relatively low, indicating a reduced presence of buyers in the market.
Technical analysis
During this month, AVAX lacked significant buying power. Currently, the Relative Strength Index (RSI) is slightly above 40, but below the half line. While there has been a slight rise in the RSI, sellers have been the driving force behind the price momentum in the market.
This is consistent with the observation that the price of AVAX has moved below the 20-Simple Moving Average line, indicating that sellers continue to drive price momentum in the market.
Despite a slight price increase in the past 24 hours, AVAX is still showing sell signals on the chart. The Moving Average Convergence Divergence (MACD), an indicator of price momentum and reversals, has formed red histograms, indicating sell signals for the altcoin. This suggests a possible price drop before a recovery.
The Bollinger Bands, representing price volatility and potential swings, have remained broad, indicating that AVAX can anticipate price changes in upcoming trading sessions.
The upper band serves as the price ceiling and corresponds to the $16 resistance level.
Featured image from Unsplash, charts from TradingView.com
