Avalanche: Then and Now
Avalanche had grown to a huge size in the passing time, and it has decreased significantly after the last 24 hours.
The coin has been doing well over the last week, but its price dropped sharply over the past 24 hours. AVAX hit a wall at $21 and was unable to break through it, causing the asset's price to fall further.
Bitcoin and other major market movers have been struggling to trade above their immediate resistance mark, as well. BTC has been stuck at the $20,000 mark for the last few days. Weakness in the broader market has caused most altcoins to drop on their charts.
The price of AVAX has been falling sharply due to the heavy selling pressure. It might hit the $14 support level in the next few trading sessions.
AVAX has been dropping in value since it reached $20.
A one-day chart can be used to analyze the price of an asset, such as Bitcoin, when it is in a state of avalanche.
AVAX was trading at $16 on the 24-hour chart. After failing to break through the $20 mark, it continued to move in a bearish direction. The next support level for the coin was at $14. If the coin fails to stay above $14, it could drop down to around $13.
AVAX failed to break past $21, which caused the bears to gain strength. The volume of AVAX traded declined on the chart and the volume bar was in red, signifying selling pressure and bearishness.
Technical Analysis is a method of forecasting the future price movement of a stock by studying its past price action.
AVAX has barely registered any buying activity over the past month. Even though the coin saw some recovery in buying strength over the last few days, that same drop in price invalidated it. The RSI was below half for the whole of this month, with occasional dips into the oversold region.
At the time of writing, RSI was showing a downtick, indicating that the downtrend may continue. M&A's signal bars were green, which indicated that the current price direction and possibility of price reversals are present.
The green bars on the MACD are considered a buy signal, so this presents a buying opportunity. If buyers act on that, AVAX might see some relief.
Capital outflows from AVAX's price chart, which meant the decrease in buying momentum. The Chaikin Money Flow, which is an indicator of capital inflow and outflow, was below the zero line. This indicated that capital inflows were less than outflows, suggesting higher selling pressure.
Bollinger Bands narrowed sharply, suggesting that explosive price movement could be in the offing. Bollinger Bands monitors the market's volatility. Overall, technical outlook remains bearish for AVAX, indicating that the coin may continue to fall.
If buyers return to the market, the coin could possibly move upwards in subsequent trading sessions.