As the global cryptocurrency market attempts to make a recovery from a recent crash, some altcoins including the AI cryptos are rallying, outperforming Bitcoin and Ethereum. Avalanche (AVAX) price is also recovering after painting the chart red the entire month, recorded losses of approximately 30%. As the token makes a recovery, investors and traders are watching closely. Will AVAX price achieve the $30 milestone? Let’s delve deeper to find out.
Understanding Avalanche (AVAX)
Avalanche is a blockchain platform addressing the scalability, security, and decentralization limitations through its unique PoS mechanism. Like Ethereum, Avalanche supports smart contracts written in Solidity for dApps. It aims to promote blockchain interoperability by integrating various DeFi ecosystems like Aave and Curve. AVAX, Avalanche’s native token, powers transactions, distributes rewards, enables governance participation, and facilitates network transactions through fees.
Current market performance of Avalanche (AVAX) price
AVAX price has risen slightly by 2.91% in the past day, to trade today at $28.14 . However, the token has faced challenges in the past week and month, with its value dropping by 13.29% and 30.84% respectively. The recent increase in price has pushed the market cap to $11 billion, earning its position as the 11th largest digital asset, according to CoinMarketCap.
The trading activity in the market has dropped, with AVAX experiencing a decline in its 24-hour trading volume by 22.96%, to reach $239.1 million.
Although the Avalanche token reached an all-time high of $146.22 three years ago, on November 21, 2021, the price has since declined by 80.78%.
Technical Analysis of Avalanche (AVAX) price
The EMAs, important for determining trend direction, currently show a bearish perspective. Short-term and mid-term EMAs are both higher than the current price, signaling resistance levels for AVAX to surpass. This trend persists with extended EMAs such as the 100-day EMA and the 200-day EMA, both adding to the bearish momentum.
The MACD, an indicator of momentum that follows trends, also displays a bearish signal. The short-term moving average being lower than the long-term moving average suggests ongoing downward momentum, shown by the negative value.
The RSI is currently at 34.63, showing the velocity and fluctuations in price movements. This value is getting close to the oversold threshold of 30, showing that AVAX is not oversold yet but is getting close. This could suggest a possibility of a price increase if it reaches excessively low levels.
Additional context is provided by Fibonacci support and resistance levels. The support levels of $24.89 and $29.18 are currently in place, while the resistance levels are at $36.11 and $40.40. These levels point out important areas where price may face strong buying or selling pressure.
Conclusion
While Avalanche (AVAX) price has shown some positive momentum with a recent 2.91% increase, its broader market performance over the past month remains challenging. The significant declines and current technical indicators, including bearish EMAs, a negative MACD, and a nearing-oversold RSI, suggest that AVAX faces considerable resistance in reaching the $30 mark within the month. However, the nearing oversold RSI also indicates a potential for a rebound, particularly if market conditions improve and investor sentiment shifts positively. The upcoming weeks will be crucial for AVAX as it navigates these technical hurdles and broader market dynamics. Investors should closely monitor key support and resistance levels, along with broader market trends, to gauge the likelihood of AVAX achieving the $30 milestone.