- According to the market cap, Avalanche ranks 12th in the cryptocurrency market.
- The AVAX crypto price has lost around 38% since April.
Avalanche functions as a decentralized application and custom blockchain network, a layer one blockchain. Its founders are Emin Gun Sirer, Kevin Sekniqi, Maofan ‘Ted’ Yin, and Ava Labs launched it.
The chart structure displayed a terrific change of around 400% in the Avalanche price from October to December 2023. This immense buying momentum has changed the trend and is consolidating on the top.
Amid this bullish trend, the asset price extended to the $60 hurdle but failed to hold, and selling pressure was detected. The price has been falling because of resistance from the declining trendline.
Recently, the AVAX price surpassed the 20-day EMA but failed to sustain and dropped by 9% in just 2 days.
According to the Bollinger Band (BB), the AVAX price has formed a shooting star candlestick pattern and showed weakness. The price has abandoned below the basic BB and is heading for the lower BB.
AVAX crypto price has slipped below the key moving average. The technical indicators are privileging negative sentiment.
Avalanche Price is at a Major Support Level: Breakdown Soon?
At press time, the Avalanche price traded at $34.41, up 1.21% in the past 24 hours. The market capitalization is $13.09 Billion, and the 24-hour trading volume is $388.17 Million.
The fully diluted market cap is $24.52 Billion, and the circulating supply is 380,616,040 AVAX. The total supply is 439,305,680 AVAX, and the maximum is 715,748,719 AVAX.
At the time of writing, the AVAX price was taking support at the major support level of $33. Suppose the price fails to defend the $33 mark and sustains below, selling pressure can be seen. Moreover, most investors may prefer to book profits, resulting in a bearish momentum.
On the other hand, if the digital asset price supports the $33 and forms any bullish candlestick pattern, buyers may show interest and lift the price to the $50 hurdle for the next few weeks.
Volume Has Dumped After the Great Pump
In the second week of April, the trading volume was pumped by more than 400%. However, it failed to remain constant and was dumped into the previous zone.
Amid these changes, the AVAX price hasn’t been affected much but has reacted negatively. If the trading volume increases and sustains, it may positively affect the price.
Avalanche Crypto Price vs. Development Activity Analysis
According to the given data, the development activity and asset price have declined continuously, but the price has declined more than the development activity. The price may be positively impacted if any positive activity occurs in the Avalanche crypto.
Conclusion
Avalanche price is currently showing profit booking and facing resistance from the declining trendline. The technical indicators are also privileging negative sentiment. The asset price is taking support at the major support level of $33, and if it fails to defend this level, selling pressure may be seen.
However, if it forms any bullish candlestick pattern, buyers may show interest and lift the price to the $50 hurdle for the next few weeks. Monitoring the trading volume and any positive development activity in the Avalanche crypto is essential, as it may impact the price positively.
Technical Levels
The major support level is $33; other than this, $23 can also work as a support level. In December 2023, the price triggered a pullback from this level and performed positively.
The AVAX price may face resistance from the $40 level; if it exceeds this, it can be interrupted near the $60 hurdle.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.