Will Avalanche (AVAX) Plunge Further? Examining the $14.5 Support – A New Target for Bears

Avalanche (AVAX) has been struggling in recent weeks. Despite some predictions of a bounce, it’s clear that the downtrend is ongoing. Earlier this month, analysts expected a 10% price increase, but instead, the price hovered in a downward spiral, falling to around $15.2 from previous highs.

Trading activity has been intense, showcasing strong selling pressure. AVAX faced significant resistance around the $20 mark, which seemed like a tough barrier for bulls to overcome. The 20-day moving average was approximately $20.29, consistently acting as resistance throughout the last two weeks.

Recent data highlights that Avalanche lost about 14% of its value since the end of February, completely retracing the gains from its previous rally in November. The market’s structure is bearish, with the last high marked at about $24.95. For a bullish shift, the price would need to close above this level, which seems unlikely at the moment.

To provide further context, many analysts are pointing to historical trends within the crypto market. The overall sentiment often shifts with broader market movements. For example, a report from Chainalysis shows that bearish trends have been common when trading volumes spike, indicating increased selling activity.

Traders should consider the upcoming price targets, with the Fibonacci retracement suggesting a support level near $14.46. For those looking for short-term trades, a bounce towards the resistance zone between $20 and $21 could offer a potential selling opportunity. However, if the price were to climb above $22.15, that would challenge the current bearish outlook.

As we navigate these fluctuations in the crypto market, it’s essential to stay informed. Insights from experts suggest that understanding market trends and emotional reactions to price changes can be crucial for making well-timed decisions. Many are watching how sentiments unfold on social media platforms like Twitter, where traders often share their predictions and reactions in real-time.

In summary, Avalanche is in a tough position right now, with a clear bearish trend. Traders may find value in the volatile movements, but caution is advised as the market continues to shift.

For more details, you can view the price charts and analysis on TradingView.



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