Avalanche price analysis: AVAX finds support at $18, can the bulls defend the level?

TL;DR breakdown

  • Avalanche price analysis points to a sideways movement below $20.00
  • The next support level is at $18.04
  • AVAX faces resistance at $20.00 and further above it at $22.32.

Avalanche price analysis shows that AVAX has finally found support at the $18.00 level, which has caused the significant downward pressure to ease. However, the asset is unlikely to stage a strong recovery as trading activity remains low in the short-term.

The broader cryptocurrency market witnessed bearish market sentiment over the past 24 hours as most major cryptocurrencies saw negative price action. The major players include BNB and ETH, which are observing drops of 8.99 and 8.04 percent, respectively.

Avalanche Price Analysis: AVAX finds support at $18.00

Technical indicators for AVAX/USDT from Tradingview

The MACD is currently declining, which is reflected in the red color of the histogram. Furthermore, the indicator is showing strong bearish momentum as seen in the high depth of the histogram. Additionally, the indicator’s lighter hue points to increasing bearish momentum as the price action finds support around the $18.00 level.

The EMAs are currently trading below the middle position as the net price action remains negative for the past five days. However, when the AVAX market turned sharply bearish, the EMAs started moving lower with the 12-EMA taking the lead. At press time, the 12-EMA is very different from the 26-EMA as selling activity has picked up over the past few hours.

The RSI has been trading in neutral territory since May 30, when price volatility for Avalanche eased on the short-term charts. However, yesterday the indicator dipped into oversold territory. The indicator is currently moving higher as the price action is finding support at the $18.00 level. However, strong downward pressures remain on the AVAX markets.

The Bollinger Bands were tight until June 10th but then showed a sharp divergence as the price action observed heavy volatility. Currently, the indicator is still expanding to ease the sharp bearish activity. At press time, the lower border is offering support at $18.02, while the middle line is resistance at $22.32.

Technical Analysis for AVAX/USDT

Overall, the 4-hour Avalanche price analysis is giving a sell signal, with 14 of the 26 key technical indicators supporting the bears. On the other hand, six of the indicators support the bulls, which have shown a significant bullish presence over the past few hours. At the same time, six indicators are sitting on the fence, not supporting either side of the market.

Sharing this sentiment, the 24-hour Avalanche price analysis also gives a sell signal, with 16 indicators pointing to a downside move while only two indicators pointing to an upside move. The analysis again confirms the bearish dominance on the medium-term charts, while showing little to no buying pressure for the asset on the medium-term charts. Eight indicators meanwhile remain neutral with no signals as of press time.

What to Expect from Avalanche Price Analysis?

Avalanche price analysis: AVAX finds support at $18, can the bulls defend the level?  2
4-hour price chart from Tradingview

Avalanche price analysis shows that after being rejected at $28.00 the bulls failed to generate momentum and after battling around $24.00 for the next few days, bearish momentum took over . However, the bulls are finding support at the $18.00 level and further downside is unlikely in the near term.

Traders can expect AVAX to observe sideways action if the bearish pressure at the $18.00 support level dissipates. Additionally, selling activity is declining as trading volume dwindles. Traders should expect a move between the $18 and $20.00 levels with room for more upside.

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