- AVAX is consolidating, with its price between closely situated MA50 and MA200.
Lack of strong momentum keeps it in a neutral zone, with potential lower supports if bearish pressure intensifies.
As an experienced analyst, I see AVAX trading in a neutral zone with its price sandwiched between the closely situated MA50 and MA200. The lack of strong momentum suggests consolidation, but there’s potential for lower supports if bearish pressure intensifies.
For the second time, the value of Avalanche (AVAX) has dipped following a market-wide correction. During this period, Bitcoin and Ethereum experienced minor setbacks in their price growth, while AVAX showed little to no response.
As a researcher observing the market dynamics, I noticed an intriguing equilibrium between the bullish and bearish forces. Neither side managed to seize complete dominance. Yet, the current trading trends hint towards a potential shift in favor of the bears.
Examining the Avax/USDT trading chart, we notice that Avalanche is confined to a particular zone, with its movement influenced by the interplay of its 50-day and 200-day moving averages.
At around $36.97, the MA50 functions as a brief hurdle for price increases, while the MA200, situated at $36.81, slightly bolsters the price during decreases. These proximally located moving averages suggest a period of compression with narrow trading ranges.
With an RSI reading of 49.63, the market shows no clear bias between buyers and sellers. Bullish and bearish forces are relatively balanced at this moment.
If AVAX is unable to surpass the MA50 resistance level, there’s a risk that it may slide back down and approach support levels near $36.50 again.
Should the bearish trend grow stronger, especially if the larger market undergoes significant corrections, Avax may be pushed down towards even lower prices.
As an analyst, I would interpret a potential price drop below $36.50 as possibly leading to support around $36.00. This level is crucial because it could help halt any further decline and prevent the price from sinking towards the $35.50 zone or even lower.
As a crypto investor observing the AVAX market, I’ve noticed that social volume around this asset has decreased noticeably. This decrease in social buzz mirrors AVAX’s challenges in maintaining elevated price points and sparking substantial trading excitement.
As a technical analyst, I would interpret this decrease in social engagement as a potential pause or “cooling-off” phase. During this time, the bullish forces in the market might be taking a brief respite before attempting to surmount any immediate resistance levels.
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This same trend is reflected in the open interest level on multiple exchanges.
The sentiment toward AVAX in the social media sphere indicates a volatile market, potentially facing downward trends due to negative perceptions about its trading volume and market share. At present, there’s no discernible direction for AVAX’s price action in the short term. A significant catalyst is required to shift the market sentiment decisively bullish.
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2024-05-30 12:07