- AVAX has broken down a critical resistance level.
Metrics suggest a bearish trend continuation
Based on my analysis as an experienced financial analyst, I believe that Avalanche (AVAX) is currently experiencing a bearish trend with the recent breakdown below the critical support level at $30. This price action indicates a potential continuation of the downtrend for AVAX.
Avalanche [AVAX] has recently witnessed a significant breach below a key support level at $30.
The price of AVAX has dropped below the crucial $30 mark, which previously functioned as a solid base since late May. This downturn might instigate renewed bearish trends among investors, who could interpret it as a symptom of vulnerability.
Key support breached
As a researcher, I’ve observed that AVAX encountered rejection at the 50-day Exponential Moving Average (EMA) resistance level, which was set around $35. This particular resistance level holds significance for AVAX as the emerging bearish trend has managed to overpower the support level at $30.
The indication was given that the price could continue to decrease, with the current level hovering around $28 and the next significant support at approximately $27.
The downtrend was further reinforced by descending trendline which has been in place since April.
What tale do AVAX metrics tell
AMBCrypto’s analysis of Santiment’s data on whale and development activities show a mixed picture.
The development progress shows some ups and downs but remains generally consistent. On the other hand, the proportion of stablecoins owned by large investors (whales) has decreased, potentially hinting at lessened engagement or altered investment tactics on their part.
AVAX Liquidation insights
The data from Coinglass regarding liquidations exhibits numerous peaks. These occurrences align with significant price fluctuations, suggesting heightened market volatility.
As an analyst, I’ve noticed a surge in short liquidations lately, indicating that traders are taking a bearish stance and betting on prices to fall even further.
As a crypto investor, I’ve been keeping a close eye on the latest analysis from AMBCrypto. They’ve delved deeper into Coingecko’s long/short ratio data for AVAX, and the findings are intriguing. It seems more investors have recently chosen to go short on AVAX, suggesting a growing bearish sentiment towards this cryptocurrency.
This suggests that investors are staking on further price declines.
Read Avalanche’s [AVAX] Price Prediction 2024-25
The path ahead
The near-term perspective for Avalanche (AVAX) indicates a downturn, but its long-term trajectory hinges significantly on prevailing market conditions and underlying strengths.
As an analyst, I’ve been closely monitoring AVAX‘s development activity and community engagement. If these trends continue to thrive, there’s a possibility that we might witness a reversal in the near term. However, if the present bearish sentiment lingers on, AVAX could experience additional downward pressure in the short run.
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2024-06-18 12:07