Avalanche‘s native cryptocurrency, AVAX, is currently navigating turbulent times as its price dips below the $40 mark. Influenced by Bitcoin’s ongoing market negativity, AVAX is now testing the critical $31 region, prompting speculation on the duration of this downturn and what steps investors can take next.
What Are the Current Support Levels?
Bitcoin (BTC) has seen a significant decline of over 20% from its peak, which has also impacted AVAX, driving its price down to the $30 range. The four-hour chart illustrates crucial support and resistance levels for AVAX. If the price drops below $30, substantial liquidations in futures could ensue, accelerating sales further.
AVAX is currently trading at $31.9, just above the main support level of $30.74. A loss of this support could trigger a rapid decline. In the short term, resistance levels are identified at $33.26 and $34.06, while $39.78 serves as the EMA200 level and trend resistance.
Will AVAX Investors Hold Out?
The Ichimoku Cloud presents key resistance, and a price rise above it is needed for a potential reversal. However, the holding periods for AVAX investors have reverted to late 2022 levels, indicating a shift towards short-term goals and confirming a selling trend.
Various metrics suggest that AVAX investors are minimizing their risks and distancing themselves from the market. While fewer short-term investors can lessen immediate price volatility, the current lack of investor appetite allows large sellers to push prices down further.
What Should AVAX Investors Watch For?
– Monitor the $30.74 support level; a drop below it could accelerate declines.
– Keep an eye on resistance levels at $33.26 and $34.06 for potential upward movements.
– Pay attention to US inflation data, as it could trigger volatility in the crypto markets.
– Watch for large sellers in the market, as they have the potential to drive prices down further.
The impending US inflation data could significantly impact Bitcoin and other cryptocurrencies, potentially ushering in a period of heightened volatility. Should AVAX drop below $24, accelerated declines may follow, making it crucial for buyers to maintain the price within the $25-27 range to avoid further losses.