In recent days, the Avalanche has seen significant losses, dropping nearly 20%. On a weekly time frame, AVAX has lost 10% of its market value. Although the daily timeframe indicates that AVAX has made a slight upward move on its chart, appreciating 1.6%, the technical outlook for Avalanche remains bearish.
Buyers have been cautious of price moves while sellers have dominated the market, causing both demand and accumulation to decline on the daily chart. For the Avalanche price to experience some relief, it needs to break above the $18 mark.
However, the $17 price level has acted as a supply zone for the altcoin. If the bulls cannot defend the current price of the altcoin, the bears can take full control of the asset price.
Like other prominent altcoins, the major market drivers have been struggling to break through their crucial resistance levels. The decrease in AVAX’s market capitalization indicates a decrease in buying pressure in the market.
Avalanche Price Analysis – One Day Chart
Avalanche was priced at $17.17 on the one-day chart | Source: AVAXUSD on TradingView
At the time of writing this article, AVAX was priced at $17.17. Immediate resistance for the altcoin was at $18 and if broken could lead to a push towards $19, thus strengthening the bulls.
However, if the Avalanche continues to trade sideways, expect a drop below the $17 level. In such a case, the next level of support for the asset was $15.
The altcoin’s recovery hinged on buyers stepping in to push its price above the $18 mark. The recent amount of AVAX traded was red, suggesting an increase in selling pressure in the market.
Technical analysis
Avalanche noted a drop in demand on the one-day chart | Source: AVAXUSD on TradingView
Over the past week, there has been a significant drop in demand for the altcoin, causing its value to decline. Despite the efforts of bullish investors to regain buying strength, it is essential to overcome immediate resistance to advance.
The Relative Strength Index indicates that sellers outnumber buyers, with the index below the 50 mark. Although there has been a small rally, bearish influence continues to dominate.
Furthermore, the price of AVAX is holding below the 20 SMA, indicating that the sellers are gathering momentum and driving the market price action.
Avalanche noted sell signals on the one-day chart | Source: AVAXUSD on TradingView
Additionally, other technical indicators suggest bearish momentum prevails. The moving average convergence divergence indicator shows price momentum and reversals in the market. On the one-day chart, red histograms have formed, indicating sell signals.
The Directional Movement Index determines the direction of the price and currently the -DI (orange) line is above the +DI (blue) line, resulting in a negative DMI reading. The Average Directional Index (red) is above the 20 mark, indicating that price momentum is gaining strength.
Featured Image from UnSplash, Charts from TradingView.com
This post Avalanche Struggles Below $18: More Loss Seems Likely
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