AVAX Plummets 15% In Week, Hits $24.69 As Analysts Warn Of 60% Decline Ahead

Avalanche’s native cryptocurrency, AVAX, has suffered a major sell-off, plummeting in price by 15% in the past week alone. In the last 24 hours, it saw a further drop of 4.54%, dropping its price to $24.69. This recent drop has caused its market cap to drop to $9.7 billion.

Over the past month, AVAX has fallen a staggering 36%, hitting levels not seen since December 2023. provide A detailed technical view of this bearish trend highlights the potential for further declines. Patel’s analysis centers around the formation of a head and shoulders pattern on the AVAX chart, which is a classic indicator of a bearish reversal.

The head and shoulders pattern features three peaks, with two lower peaks (shoulders) on either side of the highest peak (head). This pattern signals an impending decline when the price falls below the neckline support level. According to Patel, AVAX has already broken through this key support, signaling a shift in market sentiment from bullish to bearish.

Patel’s analysis suggests a 40% to 60% downside potential from current levels. He has set price targets at key support levels of $19 and $13. The first support level, $19, could attract buying interest and slow the decline. However, if this level fails to hold, Patel warns that a further drop to $13 could continue, continuing the bearish trend.

AVAX Investors Urged to Remain Caution

Investors are advised to exercise caution, especially those considering long positions. Patel urges traders to set strict stop losses to mitigate potential losses. The recent price drop can be partially attributed to increased whale activity, with 1.96 million AVAX (worth $54.2 million) being transferred to major exchanges, increasing selling pressure.

The recent price decline has pushed AVAX’s market cap below $10 billion, lagging behind other altcoins such as Tron (TRX) and Shiba Inu (SHIB). Avalanche has lost nearly $14 billion in value since mid-March, highlighting the severity of the current bear market.

Moreover, the current price at $24.69 is below both the 50-period moving average and the 200-period exponential moving average, reinforcing the negative sentiment. This placement forms a death cross where the short-term average is below the long-term average, reinforcing the bearish trend and signaling a change in momentum.

Avalanche’s AVAX is facing a steep decline, with technical indicators pointing to further declines. Patel’s analysis, which highlights head-and-shoulders patterns and the breakdown of key support levels, suggests investors should prepare for continued bearish momentum. With increased trading activity and heavy whale activity contributing to the pressure, the road ahead for AVAX looks difficult.

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