- Avax has left a symmetrical triangular pattern, which usually indicates a bearish trend.
- Traders seemed to be closing positions, which often indicates uncertainty or reduced confidence in price recovery.
Avalanche [AVAX] has recently shown considerable movements in its market behavior, with its price that baptized from the symmetrical wig pattern. Will this step fall the Altcoin to $ 20?
The next move from Avax: trend reversing or deeper dive?
The analysis of Ambcrypto showed that Avax had left a symmetrical triangular pattern, which usually indicates a bearish trend. The setup suggests a possible Downswing, with a target price of around $ 20.
Source: Coinglass
The pattern, with converging trend lines that represent consolidation before an outbreak, suggests a strong market decision before confirming the downward trend.
Support for this bearish -outlook is the cumulative volume delta (CVD), which has fallen strongly to -5.143m. CVD measures the net purchase and sales pressure by comparing buy and sell order volumes.
The negative value shows a dominance of sales orders, which strengthens the constant downward momentum.
Moreover, the RSI remains below 50, which indicates persistent bearish pressure and limited upward movement in the short term.
Is Avax undervalued?
The market value for realized value (MVRV) ratio suggested that the MVRV ratio of Avax had recently seen volatility, with remarkable peaks followed by corrections.
A high MVRV ratio often implies overvaluation, where traders can sell to protect profit, which leads to downward pressure.
Source: TradingView
Conversely, a low or negative MVRV ratio of undervaluation suggests, which may indicate a buying option.
Given the current Avax price action, the MVRV ratio refers that early investors still cannot keep losses. If the ratio remains low, this may indicate a potential battery phase before a recovery.
However, if it is back too quickly, taking profit can hold any bullish momentum.
Fading hype or smart money output?
Open interest (OI) indicated a sharp fall in the OI of Avax, which showed a remarkable reduction in speculative activity.
With OI who falls to 79,855m, traders seem to be closing positions, which often indicates uncertainty or reduced trust in price recovery.
This decrease in OI corresponds to the bearish Outlook, which suggests that fewer traders are willing to take new lifting tree positions on Avax.
However, a sudden increase in OI would indicate renewed traders’ interests, which may indicate a trend domination or upcoming volatility.
Read Avalanche’s [AVAX] Price forecast 2025–2026
Finally, Avax’s recent market behavior suggests a bearish prospect, with a potential price target of $ 20 after the breakout of the symmetrical triangle.
Negative CVD and RSI under 50 confirm persistent bearish momentum.
