Avalanche (AVAX) has been witnessing a tussle between bullish and bearish market sentiments over the long weekend.
Currently trading at $15.37, the coin has experienced a minor -0.32% dip in price.
Despite a Bitcoin-driven 28% retracement from its local high of $21.55, AVAX has managed to catch a modest +4.34% bounce on the hourly chart.
While the coin’s month-on-month performance showed a decline of 12.16%, it remains up by 41% year-to-date, highlighting its potential resilience amid fluctuating market conditions.
Avalanche (AVAX) Loses Critical MA200 Support
Recent price action for AVAX has seen it drop below the steady support of the 200-day moving average (MA200) during the long weekend.
This development is critical as failure to recover above this level could result in the formation of an ironclad area of stiff resistance.
Conversely, if the coin manages to break back above the MA200, it could target an upside of $18, representing a 16.66% increase.
In terms of technical indicators, the Relative Strength Index (RSI) for AVAX appears very bullish, with a massive oversold signal at 35.25. This could potentially suggest an imminent bounce.
However, the Moving Average Convergence Divergence (MACD) presents a contrasting view, with a minor bearish divergence at -0.20, reflecting the loss of support from the MA200.
AVAX Struggles to Capitalize on Bullish Sentiment
Two days ago, the market for Avalanche (AVAX) faced bearish resistance, as selling pressure deflated the price curve to $17.22.
Although the cryptocurrency market experienced a surge in trading, AVAX struggled to capitalize on the bullish sentiment.
The one-day price chart at that time showed intensifying selling pressure, causing the AVAX/USD price to plummet to $17.22.
High volatility levels and the convergence of the Bollinger bands suggested unfavorable future market movements.
Analysing AVAX market dynamics from the weekend, it is evident that the coin has not yet recovered from the bearish pressure.
Avalanche Price Prediction (Short-Time Frame)
The current one-day and four-hour Avalanche price analysis reveals a preference for sellers, with the coin’s value dropping further to $17.21. If the downward trend persists, AVAX may continue on this trajectory.
Given the current market scenario, there is a downside risk with the nearest lower support level at $15.40, representing a potential 9.92% decline.
With a risk-to-reward ratio of 1.68, AVAX presents a good entry to ride a much-needed bounce.
However, the trendline could be invalidated if the coin drops to the lower support level.
As the market for AVAX continues to fluctuate, the crucial question that arises now is: will AVAX hold its crucial support, or will it crash through the $15.30 mark?
The answer likely rests with Bitcoin – which is facing a vital test of support above $27,000 – a move south from here would see bearish action engulf the market for the rest of May.
RELATED:
Love Hate Inu - Next Big Meme Coin
- First Web3 Vote to Earn Platform
- Latest Meme Coin to List on OKX
- Staking Rewards
- Vote on Current Topics and Earn $LHINU Tokens