Connect with us
Active Currencies 14937
Market Cap $2,429,906,223,367.50
Bitcoin Share 52.52%
24h Market Cap Change $-4.01

$52 or $20 – Which level will AVAX see first?

2min Read

Share this article

AVAX’s price has been hovering above a stable support level with no signs of a volatile move in sight. However, things could change as Bitcoin’s price is starting to look bullish. Therefore, investors need to pay close attention to altcoins as they could explode soon.

Avalanche and its capacity to move higher

AVAX has crashed by 84% from its all-time high of $146.75. A majority of its downswing took place over the last two weeks or so. After the FOMC meeting in the first week of May, trouble started brewing for UST and LUNA. This development ultimately exacerbated the already weak market structure and crashed Bitcoin’s price from $31,000 to $29,000 and then, $25,000. 

This sudden downtrend caused altcoins including AVAX to suffer a similar fate. For AVAX, it was a 67% downswing, one that pushed it down from $69.46 to $22.43 and briefly shattered the $31.38-barrier. 

So far, the recovery above this level has flipped into a support level, suggesting that a further uptrend is likely. The immediate hurdle at $39.92 is where buyers will face some resistance from sellers which will be a determining factor.

If Avalanche manages to flip this level into a support barrier again, it will open the path for a quick 25% run-up to $52.53. In total, this move would represent a 55% ascent from the current position and is likely where the upside is capped for AVAX.

A failure to move beyond $39.92 will indicate that the buyers are weak and non-collaborative. This could trigger a retest of $31.38.

If sellers take control and flip this barrier into a resistance level, it will invalidate the bullish thesis and trigger a crash to $20.80.

Source: AVAX/USDT on TradingView

What does the volume say?

Further supporting the poor state of buyers for AVAX is the on-chain volume. More often than not, a spike in on-chain volume indicates that investors are interacting with the blockchain and are likely investing in the token.

More so, an uptick in this metric is often followed by a spike in AVAX’s price. It can sometimes allow traders to catch a trend early on. For AVAX, the on-chain volume has dried up from a peak of 2.58 billion to 673 million. This 74% downtick in on-chain volume is indicative of waning investor interest and reveals a capital flight.

Therefore, investors need to wait for a flip of the $39.92-hurdle into a support floor to position themselves long.

Source: Santiment


Jibin Mathew George is Editor-in-Chief at AMBCrypto. A domain expert in International Relations (European Politics), he has always been a believer in the unlimited possibilities afforded by blockchain and by extension, cryptocurrencies. As someone who has been watching and writing about this space for over 5 years now, Jibin has closely tracked the emergence of cryptos and digital assets as a separate asset class in portfolios world over. A lawyer by training, he previously contributed to the News and Research desk of Diplomacy & Beyond Plus. Before his stint at D&B, he was Editor at ED Times. Jibin also takes a great interest in politics, especially the corresponding effect political decisions and fiscal policy have on the world of finance, with a special focus on cryptocurrencies.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.