Crypto in 66% Drop: Should You Seize the Opportunity? Analysis of July 18, 2024

After reaching a peak around $65, Avalanche experienced a drop of more than 66%. Let’s examine AVAX’s future prospects together.

Avalanche (AVAX) Price Situation

After hitting a low of $8.6, Avalanche started a bullish rally reaching a 484% rise in three months. It was when it reached $50 that this rise faded. It took the return of buyers at $27 for the crypto to regain strength at the end of January 2024. Two months later, Avalanche achieved a performance of 142% and reached a new high at $65. Unfortunately, it is at this price level that Avalanche’s price significantly changed direction. Indeed, the crypto garnered selling interest forming a downward trend bringing its price down to $22. This drop was fueled by a general decline in the crypto market and a declining interest in the Avalanche ecosystem.

At the time of writing, the Avalanche price is trading just below $28. The latest fluctuations of Avalanche thus demonstrate a bullish correction in the crypto. This allowed it to re-enter the $27 support and remain above the value zone identified just below $26. Although one might imagine the continuation of this rise, Avalanche’s short-term trend remains bearish. On the medium-long term trend of Avax, it seems that it remains bullish. Nevertheless, it is increasingly worrying, as evidenced by the 50 and 200-day moving averages, both above the crypto price and both trending downward. Unsurprisingly, on the Avalanche momentum side, you can see that it has significantly decreased, as evidenced by its price and oscillators.

The current technical analysis was carried out in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. There you will find live sessions, educational content, and mutual support around financial markets in a professional and friendly atmosphere.

Hypotheses for Avalanche (AVAX) Price

• If Avalanche’s price stays above $25, one could anticipate a bullish continuation breaking the $30 mark. The next resistance to consider would then be around $35 – $40. If the bullish movement continues, this could imply a reach of $50. At this point, it would represent an increase of over 80%.

• If Avalanche’s price fails to stay above $25, one could envisage a return around $22 or even $21. The next support to consider, if the bearish movement continues, would be around $19. Further down, one can note support at $16. At this point, it would represent a decline of about 42%.

Conclusion

Avalanche experienced a period of strong growth followed by a significant drop, impacted by market factors and decreasing interest. Currently, although the crypto has shown signs of recovery, its short-term trend remains bearish, with medium-long term indicators causing concern. Thus, it will be crucial to closely observe the price’s reaction to different key levels to confirm or refute current hypotheses. It is also important to remain vigilant against potential “fake outs” and market “squeezes” in each scenario. Finally, let’s remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also evolve rapidly due to other more fundamental factors.