Will AVAX Crypto Sustain Support And Advance To Higher Levels?

• The AVAX crypto has advanced by more than 2% in the last 24 hours.
• The current market cap of the Avalanche crypto is $3.285B.

AVAX was first launched in the year 2020 and follows the POS consensus mechanism with SHA 256 algorithm. Avalanche is an open-source smart contract platform. It is fully compatible with the Ethereum development toolkit. It is also known as a high throughput contract blockchain platform.

The AVAX has a market cap dominance of 0.283% as per the Coingecko. The current volume/market cap ratio of the crypto is 0.0533 and the market cap rank of the crypto is #23. The crypto price is still 231.44% above its all-time low price.

The largest volume of the AVAX crypto is traded on USDT pair and the fully diluted market cap of the crypto is $6.68B following a total supply of 432.279M AVAX and the max supply is 720.00M AVAX. Also, the circulating supply of the crypto is 354.9M AVAX.

Avalanche Will Make Double Bottom Or Will Breakdown?

a by writer11_gsm on TradingView.com

The AVAX crypto is trading in a consistent downtrend and the price is continuously declining to further lower levels. Based upon the very recent price action the AVAX crypto is taking support at a lower level by sustaining above the previous swing low. If the crypto breaks above the previous swing high, it can lead to a change in trend to bullish and lead the crypto price to higher levels.

The 50-day and the 200-day EMA are trading in a death cross on the AVAX crypto chart. The crypto price is trying to rebound and it trading close to the 50-day EMA. If it manages to break above the 200-day EMA then it will lead to a change in trend to bullish.

The RSI for the crypto has once hit the overbought zones but has again declined to lower levels and is trading below the 50 level. This indicates a weakness in the price momentum of the crypto.

Avalanche Liquidation Analysis

The derivative trading volume of the crypto has witnessed a slight advance of 26.15% in the derivatives trading volume. Following this, the open interest has also advanced by 3.14% resulting in $95.93M. The long/short ratio for the crypto has resulted in 1.079 following a higher short liquidation in crypto.

Conclusion

The AVAX crypto is witnessing signs of bullishness in the derivatives data but the technicals still suggest weakness on the charts. The technical indicators are also indicating weakness following a downtrend on the daily charts.

Therefore, unless the AVAX crypto breaks above the level of $11.80 we cannot expect a good advance in the price of the crypto as it might face selling before at lower levels.

Technical Levels 

• Support levels- $6.0 and $9.2500
• Resistance levels- $11.80 and $14.90

Disclaimer

The views and opinions stated by the author or any other person named in this article, are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.