Avalanche [AVAX] On the 19th June, a dip of 9.50% was recorded. The underlying factors for this bearish forecast are the ongoing geopolitical turmoil, the general market trend and the collapse of an important support level.
AVAX had fallen 9.50% during the previous 24 hours, and traded at $6.07 as of press time. AVAX’s price dropped sharply, but its trading volume spiked, showing that the market was active.
The surge of activity indicates that traders are following the trend and further strengthening AVAX’s negative momentum.
This decline is likely due to the U.S.-Iran postponement following the recent attacks in Lebanon. The crypto market fell by 2.66%.
AVAX Chart: More Pain to Come
TradingView shows that AVAX has been in a bearish trend since the 6th of June. Today’s decline by 9.50% extended this trend. The drop below $6.24, which was a key floor, triggered an immediate breakdown.
AVAX’s trend appears to be bearish as key levels of support at $8.95 ($8,21), $6.24, and currently $8.21 continue to break down.
In addition, if the price of the asset is below the Exponential Moving Average 200 days (EMA), it indicates that sellers are in complete control.
If the price is currently moving up, then AVAX If the price continues to fall and stays below $6.24, further declines could be expected in the next few days.
A potential recovery is only likely to occur if price returns to the $6.24 mark; otherwise the trend will continue in the negative direction.
AVAX’s Average Directional Index was 54.89 at the time of publication, which is well above the threshold value of 25. This indicates a very strong trend for the asset.
Mixed sentiment among traders and investors
AVAX market structure has turned negative, and trader sentiment is also on the same track, with market participants betting that further declines will occur.
Data derivatives from CoinGlass AVAX’s long/short ratio fell to 0.8709 in the last few days, showing a bearish mood among traders.
Open Interest has also risen by 2.31 percent to 261,78 million dollars, indicating that the bears are building up positions.
To date, the main liquidation levels are $5.93 at the bottom and $6.17 at the top.
The traders have created $1.24million worth of long and short positions on the lower level. They also built $2.75million worth of positions in the upper level. This indicates that the bears currently dominate the market, while the bulls seem to be losing their momentum.
But on-chain analyses paint a very different picture. Data from Nansen The top 100 AVAX address have increased their AVAX holdings by 1.47 percent, which indicates a potential accumulation of AVAX during the recent drop in price.
The exchange reserve has also fallen 0.30%. This suggests that top holders are not the only ones taking advantage of this decline. Long-term investors have followed the same strategy.
Final Summary
- AVAX dropped 9.50%. It lost an important key support level. Charts indicate that there could be further downward movement.
- Investors seem to take advantage of the price dip while traders bet against it.
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Source: ambcrypto.com
