Avalanche (AVAX) has pushed forward with its its ascent, despite market obstacles and negative circumstances over the past few weeks.
Analysis of the Avalanche price reveals a bearish trend
AVAX market sentiment remains bullish
AVAX/USD trading at $20.57 as of this writing
Due to the unfavorable market conditions, its market cap dropped by almost $2 billion over the last two weeks, but it is now trying to recover.
At the time of writing, Avalanche’s market cap – at $5.8 billion – was below its monthly high but above its monthly low. But with the market still trying to recover from last week’s fall, will more value permeate the blockchain network now?
Avalanche Price Circling Support Line
It should be noted that for the past five days, AVAX has been circling above its support line. Its rising range, during which it has been oscillating for the last nine weeks, has the same support line.
As the cryptocurrency declines approaching the $22.62 level, Avalanche price research reveals a bearish trend in the market.
The $23.63 level is now acting as resistance for the AVAX/USD pair, and it must be broken in order for the pair to go higher.
But it’s likely that the bears will take over the market and drive the price down to the $22.52 support level.
The one-day Avalanche price analysis has verified a negative trend, and the price is now declining once more.
The AVAX/USD pair has been declining since last week and is currently trading at $20.58.
The price movement continues to be contained by the two parallel trendlines, and the market is moving in a descending channel formation.
If the selling pressure persists, the price is predicted to continue falling and may potentially breach the $22.52 support level.
AVAX Price Experiences High Level Of Uncertainty
The current price level of AVAX underlines the high degree of uncertainty.
The fact that the price has repeatedly tested the same support line is what causes the doubt. Therefore, there is a chance of support weakness.
Despite the market’s uncertainties, AVAX’s market sentiment is currently shifting in favor of the bulls.
This was made clear by the weighted sentiment indicator on August 21 after it had previously declined during the bearish performance the previous week.
The market is clearly in a negative trend, as evidenced by the 4-hour price chart for Avalanche price analysis.
The market is losing momentum and is anticipated to move lower in the near future, and the declining volume is another sign of this.
On the other hand, the bulls may force the price up to retest the $23.63 resistance level if they can seize control of the market.
The signal line is going above the histogram, which is a negative indication, according to the Moving Average Convergence Divergence (MACD) indicator.
Another sign that the market is bearish is that the Relative Strength Index (RSI) indicator is below the 50 level. $21.15 and $22.06 are the 50-day and 200-day moving averages, respectively.
AVAX total market cap at $5.82 billion on the daily chart | Source: TradingView.com
Featured image from The Daily Hodl, chart from TradingView.com