The downward avalanche trend (AVAX) continues amid market uncertainty

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In general, the cryptocurrency market is currently bearish, with coins like Avalanche (AVAX), Ethereum, Litecoin, XRP, Solana, and others all affected by this trend. Currently, AVAX price is in a strong downtrend below the 100-day moving average (MA) and could continue moving in this direction for a while before turning back.

Technical indicators point to a downtrend in Avalanche

Looking at the chart on the 4-hour time frame, AVAX has moved below the 100-day moving average and the trend line. This could mean that the price is in a downtrend. The MACD indicator on the 4-hour time frame is suggesting a very strong bearish move as the MACD histograms are trending below the MACD zero line.

Furthermore, the MACD line and the MACD signal line tend to lie below the zero line. Looking at the formation of the MACD indicator, it shows that there is a possibility that the price will continue to fall.

Furthermore, the Relative Strength Index (RSI), also on the 4-hour time frame, suggests a bearish trend as the RSI signal line is moving in the oversold territory. Despite the possibility of a retracement at this point, the price will continue to decline thereafter.

The Alligator indicator is another powerful tool for determining the trend of an asset. Looking at the image above, you can see that the alligator’s lip and teeth have crossed over the alligator’s jaw with the face down. This formation suggests that the trend is bearish and the price could see a sharper decline.

What could happen next?

Based on the previous price movement, there are two major resistance levels at $50 and $59.99 and a support level at $39.95. With Avalanche on a negative trajectory, there could be a further move towards the next low at $27.53 if prices manage to break the support level at $39.95.

On the other hand, if the price fails to break the previous low, an upward corrective move towards the resistance level at $50.80 could begin. However, if it manages to break this level, AVAX could move even closer to the $59.99 resistance level.

At the time of writing, Avalanche was trading around $38, indicating a decline of 1.75% in the last 24 hours. Its market capitalization has fallen by over 16% while its trading volume has significantly increased by almost 250% over the past day.

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