Avalanche Price Plummets 10%: What’s Driving the Sudden Drop?
Avalanche (AVAX) price, a layer 1 blockchain, has recently observed a downward trend. The market has exerted strong bearish pressure, leading to a noticeable decline in value. Fluctuating market conditions have further fueled this descent as bears dominate the trading scene.
Despite these hurdles, the layer 1 blockchain has demonstrated resilience with a robust 17% gain over the past month. This growth is supported by a significant $40 million developer incentive program and a crucial mainnet update.
These factors contribute to a bullish outlook among traders, who anticipate AVAX overcoming the critical $30 resistance level. However, AVAX still faces hurdles with tough resistance levels that could temper its ascent.
The cryptocurrency market is undergoing a significant adjustment, signaling a downward trend. Bitcoin maintains a position around the $61,000 mark, while Ethereum has dropped below the $2,500 threshold. Leading alternative altcoins such as SOL, BNB, XRP, and TON are also witnessing declines, paralleling the downturn in AVAX price.
Avalanche Price Dip Sparks Bearish Market Sentiment
Over the past 24 hours, the Avalanche price has dropped significantly, declining by 6.68%. At the time of writing, the AVAX price is trading at $25.89, down from a high of $28.05 earlier in the day.
The decrease in value marks a notable fluctuation in the market, as depicted in the recent price performance. This downward trend began after a brief peak at $27.76, with the price steadily falling to its current level. Today’s low trading value stands at $25.23.
Can AVAX Price Sustain Amid Bearish Pressure?
The AVAX price forecast may breach the $24 support level if negative market trends dominate. If the decline persists, a further dip to $22 is possible. In a significant market downturn, the altcoin could tumble to $20. This represents a 21% drop, indicating a strong wave of selling pressure.
The 4-hour technical indicators for AVAX highlight a significant price correction. The Moving Average Convergence Divergence (MACD) shows increasing bearish momentum. The MACD line (blue) widened its divergence below the signal line (orange), and the histogram bars turned a deeper red.
Avalanche Price Chart| Source: TradingView
In the recent into the block, AVAX demonstrates a challenging position. 67.03 million AVAX, valued at approximately $1.73 billion, are out of the money. This figure starkly contrasts with the in-the-money AVAX, which comprises only 9.45 million tokens or about $244.55 million.
These may face losses unless the market recovers significantly. Meanwhile, a negligible 21 million AVAX remains at the money, reflecting the volatile nature of this cryptocurrency.
Source: IntoTheBlock
Avalanche price has experienced a sharp 10% drop due to increasing bearish momentum and broader market pessimism. Despite recent gains and bullish sentiment, AVAX faces resistance and could drop further if negative trends continue.
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