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AVAX to fall below $50 – Should you start buying or wait some more?

2min Read

Since the 12th of March, the RSI on the one-day timeframe of AVAX has formed lower highs.

AVAX likely to sink below $50, but you should wait before buying
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  • Avalanche displayed a bearish momentum divergence on the one-day timeframe.
  • The liquidity below $50 presented an attractive buying opportunity.

Avalanche [AVAX] pulled back from $65.39 to $56.89 within the past 24 hours, a 12.9% drop. The long-term bias was bullish, but the price action showed we could see further losses.

In other news, the Avalanche Foundation announced its investment in five meme coins. The tokens on the list saw significant trading volume and surged higher following the Foundation’s disclosure.

A momentum divergence was underway

AVAX 1-day Chart

Source: AVAX/USDT on TradingView

Since the 12th of March, the RSI on the one-day timeframe of AVAX has formed lower highs while AVAX prices pushed higher. This was a bearish divergence.

It suggested that a pullback was likely around the corner for the token.

On the other hand, the OBV continued to trend higher alongside the price. This suggested that buying pressure has not slowed down, and any pullbacks would likely see a quick recovery.

To the south, the former bearish order block on the daily chart at $48 was a demand zone.

A move just beneath its low at $46.2 appeared likely, given the market-wide selling pressure and the momentum divergence.

Understanding the liquidity charts

AVAX Liquidation Levels

Source: Hyblock

AMBCrypto analyzed the liquidation heatmap data from Hyblock to see where AVAX would be attracted to. The $65.8-$66 region was the bullish target.

However, $48.15 and $45.94 were more likely targets given their proximity to demand zones.


Is your portfolio green? Check out the AVAX Profit Calculator


If Bitcoin [BTC] prices trend lower in March, it would drag the crypto market further south. Hence, AVAX investors could wait for a dip below $50 to add to their holdings.

The long-term uptrend is expected to remain intact, as a drop below $34.83 is required to flip the 1-day market structure bearishly.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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