Is $50 Next for AVAX?

Avalanche (AVAX) has been experiencing a downward trend in its price movement, currently at $42.15. Over the last 24 hours, the price has decreased by 3.85%, signaling a shift in market sentiment. With its resistance levels being tested and a significant drop in trading volume, many are wondering if AVAX can recover to the $50 mark or if further declines are in store.

Key Resistance and Support Levels to Watch

Currently, AVAX is facing a key resistance level of around $43.81. Despite attempts to break this threshold, the price faced substantial selling pressure, which caused the downtrend to continue.

This resistance point remains crucial for any potential bullish reversal. Therefore, for AVAX to show a more sustained upward movement, it must break through this level, paving the way for higher prices.

Read also : Avalanche vs. TRON: Market Cap Battle, AVAX Wins

On the flip side, the support level around $42.00 has become a focal point for traders. This price level is often seen as psychologically significant, given its rounded nature. If AVAX fails to hold at $42.00, the next major support zone could emerge near $40.00, marking a critical threshold for investors to watch. A breakdown below $42.00 may accelerate the downtrend, with bearish pressure pushing the price toward lower support levels.

The 24-hour trading volume of AVAX has decreased significantly, with its Volume/Market Cap ratio sitting at 6.59%. This suggests a reduction in market activity during the ongoing downtrend, potentially signaling diminished investor interest.

Lower volume often indicates that traders are cautious, waiting for clearer signals before making significant moves. Hence, AVAX may need a surge in trading activity to regain momentum.

Despite these challenges, Avalanche’s long-term potential remains intact. However, the current market cap and Fully Diluted Valuation (FDV) show that investors remain wary. This reflects broader market sentiment, where caution is dominating, and speculative investments are being approached with greater scrutiny.

Short-Term Technical Indicators

In terms of technical indicators, AVAX’s 1-hour RSI reads 42.55, suggesting that the asset is slightly oversold but not in extreme conditions. This could indicate a potential for a short-term rebound, though the move may not be significant unless further buying pressure emerges.

Additionally, the 1-hour MACD trading below the signal line suggests that downward momentum persists in the short run, keeping the price under pressure.