Avalanche (AVAX) price analysis reveals that there is no sign of a bullish trend when examining the charts. Daily and larger time frame charts show a downward trend since May. However, when analyzing the 4-hour and shorter price charts, the structure indicated a bearish direction.
According to recent price analysis, the price drop below $9.5 can be considered a reflection of the intense bearish sentiment in the market. Temporary support levels are found at $9.3 and $9. As of the time of writing, there was a threat of a drop to $9.
AVAX Coin Reviews and Current Status
The 4-hour AVAX chart below clearly shows a downward trend after the price dropped below the $9.07 lowest price level on October 15. The Relative Strength Index (RSI) also demonstrated the downward momentum by falling below the neutral level of 50.
The region between $8,730 and $9.05 was seen as a bullish order block on the daily time frame. Over the past few weeks, Avalanche bulls have continued to show resistance in this region.
However, due to the bearish trend in the market, the uncertainty of how long the bulls can withstand this situation remains. A strong stance in the region could lead to a rise in Avalanche price to the $9.8 level, which was seen on Monday (October 16).
On-Balance Volume (OBV) indicators have experienced a significant decline over the past two weeks, revealing the extremely high selling volume in the altcoin. This is in contrast to what Avalanche did in September, when it moved between $8.8 and $9.4 and remained relatively stable.
The Future of AVAX Coin
Based on the information obtained so far about Avalanche, it would not be wrong to say that bears have significant power. However, according to data from Hyblock, it is possible to observe a higher movement in the search for liquidity in the future.
Some indicators currently indicate that short positions are at risk compared to long positions. Significant liquidation levels are considered to be $8.8 and $9. Price movement to higher levels is also possible based on market trends and chart analysis.
In particular, the $9.24 and $9.34 levels for AVAX can be considered as points that could trigger a total of $5 million worth of short liquidation.
Disclaimer: The information in this article does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks, and should conduct their own research when making transactions.
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