AVAX Technical Analysis: Will Avalanche Reclaim the Level of $20?

After touching its previous high of $19.52 the previous week, the Avalanche (AVAX) could not sustain the bull trend for a long time and collapsed drastically on Tuesday. Despite the bull cycle hit the market early in this month, AVAX lost 8.35% in the last 24 hours and 13.46% in the last 7 days.

With a market cap of $ 5.01 billion, AVAX has 299.61 million tokens in circulation out of a total supply of 720 million, making it one of the top 10 crypto tokens worldwide.

Key Points

Source Tradingview

AVAX Technical Analysis

Priced at $16.7343 at the time of writing, AVAX is again on a downward trajectory, with the sellers maintaining control over the market, continuously pushing the RSI toward the oversold zone. Unable to take advantage of small bull cycles, the token has been unable to cross the mark of $20 since September 2022.

The 50-day SMA follows the trendline which is indicative of low highs and low lows, signaling a strong but shallow downtrend.  200-day SMA also reaffirms the downtrend by crossing the support level while remaining below the resistance level. The AVAX price shows some retracement at 61.80%, but buying pressure led it to hoover around 38.20% on the Fibonacci chart. 

Technical Indicators

The RSI slope confirms the lack of uptrend in the market by making a bearish divergence, while the RSI line is about to enter the oversold zone at 40%. MACD line closely skips making the bullish crossover, with histogram and signal lines not showing any symptom of recovery.

According to technical indicators, the AVAX price continues moving downwards, making repeated lower price rejections with RSI teasing the oversold line.