- AVAX experienced a significant decline after peaking above $52 in early 2024, now trading near $19 and challenging key support levels firmly.
- Technical indicators reveal the short-term EMA near $19 with a downward slope, while DI readings favor sellers over buyers in current trends.
- Recent trading activity shows a 2.90% rise in 24 hours and 12.41% over seven days, with volume $272 million, driving market focus.
Avalanche (AVAX) shows signs of breaking free as market participants monitor a potential sharp decline. A tweet by a prominent crypto analyst, Ali_Charts, warns that exiting this channel might trigger a swing toward $7. This news follows a significant downtrend after the asset peaked at over $52 in early 2024.
Price Movement and Critical Levels
Ali’s tweet notes, “Avalanche $AVAX breaks loose! Exiting this channel sets up a big price swing to $7.” The tweet draws attention to the possibility of a steep decline if key support levels fail to hold.
The asset dropped below critical support at $19.50 and now faces resistance at that level. The technical analysis shows lower highs and lower lows after reaching its previous peak. The market awaits further action as traders monitor price behavior.
Technical Indicators and Market Behavior
AVAX’s price hovers near $19.09 at the of writing, with the short-term EMA near this level on a slightly downward slope. If the price closes above the moving average, it could lead to a short-term rebound. The Directional Movement Index displays a +DI reading near 15 and a -DI reading close to 28, suggesting selling pressure dominates.
The Average Directional Index stands just above 20, indicating a moderately strong trend. Support levels are noted between $13.50 and $11.50, with the potential for a swing toward $7 if the bearish pressure continues. Analysts maintain caution, as any rebound in price must overcome the resistance at $19.50.
Market Sentiment
At press time, AVAX recorded a 2.90% price increase over the last 24 hours. A seven-day rise of 12.41% accompanied by a trading volume of $272,819,605 underscores active market engagement. Recent movements offer a view of potential shifts in market sentiment.
Data indicates that reclaiming the $19.50 level may initiate a reversal and enable a climb toward $22.50. The technical analysis and trading volume guide investors in navigating the current market environment. The warning in Ali’s tweet serves as a reminder that market exits can lead to dramatic price swings.
