Bitcoin continues its downward trend, falling below the significant $60,000 mark to $60,200, with altcoins experiencing even steeper declines. The cryptocurrency market is seeing widespread losses, with almost all altcoins in the red. Avalanche (AVAX) is notably struggling, raising questions about its future performance and the expected levels for investors in the coming days.
AVAX Performance Analysis
Since reaching a high of $60.42 on March 14, AVAX has been consistently declining. In comparison, while SOL Coin attempted to reach new highs of $256, AVAX remained frail due to the excess supply caused by double-digit inflation. This led to a 35% price drop last month. Currently, AVAX is trading below $25, with over 52% of investors facing potential losses if Bitcoin does not recover, possibly triggering more sales.
AVAX Network Activity Insights
Despite weekly losses exceeding 20%, there has been a notable increase in network activity. The AVAX network saw an 88% rise in new addresses conducting transactions and a 59% overall increase in new addresses. Typically, a surge in daily active and new addresses indicates either increased purchases or sales; considering the current market sentiment, the latter seems more plausible.
Key Inferences for Investors
- The current AVAX price is trading within a descending channel, a bearish indicator.
- Key support levels include $23.57 and $22.04, with potential further drops to $18.5 if selling persists.
- A rebound might occur at $26.9, but Bitcoin’s performance heavily influences AVAX’s direction.
- Investors should monitor Bitcoin’s support levels, as a drop below $58,000 could lead to further altcoin declines.
Conclusion
The bearish trend in AVAX reflects broader market struggles, with key support levels being tested. Investor sentiment is cautious, heavily influenced by Bitcoin’s price movements. Further declines in Bitcoin could exacerbate losses for AVAX and other altcoins, making prudent monitoring essential for investors.