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The cryptocurrency market has been on a rough ride lately, with many digital assets experiencing significant price fluctuations. One of the notable tokens that has caught the attention of traders and analysts is Avalanche's AVAX.
According to the latest statistics, AVAX is currently trading at $47.60, marking a substantial 18.79% decline over the past seven days and an 8.29% drop in just the last 24 hours as of writing. The market capitalization of AVAX stands at an impressive $17.9 million, which is the 10th position among cryptos.
AVAX Data Chart (CoinMarketCap)
However, despite its substantial market cap, AVAX's trading volume over the past 24 hours has been relatively modest, at over $813.6 million. The circulating supply of AVAX tokens currently stands at 377,416,536 of the total supply of 436,106,176 tokens, with a maximum supply of 715,748,719 tokens.
The technical analysis of AVAX's price movement paints a bearish picture, particularly over the past few weeks. For the last three consecutive weeks, the price has been on a downward trajectory, with the last two candlesticks closing in the red.
AVAXUSD Weekly Chart (TradingView)
This bearish trend can be traced back to March 18, when AVAX tested resistance at the top of the ascending channel. Since then, the price has broken through the support at the $50.2 zone, continuing its rally to the downside. Currently, AVAX is trading towards the support of the ascending range, approximately at $42.
The Relative Strength Index (RSI), a widely used technical indicator, stands at 61.53, suggesting that further downside momentum is likely to follow.
On the daily timeframe, AVAX's price has been bearish since the opening of today's candlestick, and it is currently trading towards crucial support levels.
AVAXUSD Daily Chart (TradingView)
A triple confluence lies below the current market price, acting as a strong magnet, pulling the price towards this zone. First, there is a fair value gap resulting from the bullish impulsive run on March 11, 2024, which is expected to be filled. Second, a demand zone arose from the same impulsive run. Third, the ascending trendline, or support of the ascending ranging channel, is present in this area. Finally, by the time the price reaches this zone, the RSI is likely to read an oversold mark, currently sitting at 42.
These four confluences are expected to attract the price to this zone, after which a price rejection and bullish indications, along with a resurgence of momentum, are more likely to occur. However if the bears take full control of the zone , price can break and propel the prices lower to the next support level at around $30.25 zone.
On the 4-hour timeframe, the price is at a significant dip, with the RSI reading an extremely oversold level of 23.64, indicating that a reversal to the upside is clearly approaching.
Avalanche has recently announced its inclusion in the Hooked 2.0 expansion, driving perpetual growth in Web3 mastery. This integration into the Hooked Alumni System promises a wealth of innovations within Avalanche's powerful blockchain network of decentralized applications, operating within an inclusive, interoperable and highly scalable ecosystem powered by a uniquely robust consensus mechanism.
As the cryptocurrency market continues to evolve, the performance of AVAX and other digital assets will be closely watched by traders, analysts and enthusiasts alike, with its technical analysis playing a crucial role in predicting potential price movements and identifying trading opportunities.
