Avalanche Price Analysis: AVAX at $52.6 support, lower prices to follow?

Avalanche price analysis is bearish for today as the price action could not break the resistance at $54.5. We also saw that on 12th September, the cryptocurrency was unable to break the resistance at $62.6. A price drop followed this, and the cryptocurrency fell to 50 USD, and now, we can see that the cryptocurrency is at $52.9, which is just above the support at $52.6.

According to the data by Coinmarketcap, the current trading volume of the cryptocurrency has dropped by 29.11 percent from yesterday. As for the market capitalization, the stats have dropped by over 1.43 percent. This indicates a bearish growth for the cryptocurrency, and therefore, lower prices are possible. It can also be seen that the cryptocurrency is not following Bitcoin‘s movement for now as Bitcoin is up by over 3 percent.

Bitcoin is currently at $46.5K after we saw a bullish divergence on the 4-hour chart. As for AVAX/USDT pair, we have witnessed three red engulfing candles, i.e., the selling pressure is gaining ground. In order to predict the movement of the market, we will also try to focus on the readings of technical indicators.

Avalanche price analysis: Technical indicators turning bearish on the 4-hour chart

The Avalanche price analysis for today is bearish because the technical indicators show that selling pressure is increasing. We will be analyzing the readings on RSI, MACD, and the Bollinger Bands. The Avalanche price analysis came in great demand after the price rally wherein Avalanche jumped from $32 to $64. Have a look at the charts below for a detailed view of the technical indicators.

The price action in the Bollinger Bands suggests that a breakout might be possible from the lower end of the Bollinger Bands. Currently, the movement is dropping down from the neutral zone towards the lower end of the Bands. Once the price movement reaches that spot, a breakout is possible, meaning a perfect opportunity for buying.

Now comes the position of the key Moving Averages, i.e., the 50-day and the 100-day Moving Averages. The price of AVAX/USDT is currently trading above the 50-day and the 100-day Moving Averages as well. But, it is clear from the charts below that if this trend follows, we might see AVAX/USDT lose these key Moving Averages.

Avalanche Price Analysis: AVAX at $52.6 support, lower prices to follow? 1
Avalanche price analysis on the chart by TradingView

The Avalanche price analysis cannot be accurately made without the integration of readings from the MACD indicator and the RSI indicator. The RSI indicator levels can be seen on the 4-hour chart below. The gradient is slightly negative, and the line is entering the neutral zone from the bullish zone. This confirms that the selling pressure is increasing and defeating the buyers.

The MACD indicator, on the other hand, has witnessed a bearish divergence, i.e., the signal line (the orange one) has crossed above the MACD line (the blue one). This clarifies that AVAX/USDT pair is not following Bitcoin’s movement as Bitcoin saw a bullish divergence on the 4-hour chart. Due to the bearish divergence on the chart below, we can expect lower prices, and it is likely that the support at $52.6 won’t hold.

Avalanche price analysis
Avalanche price analysis on the chart by TradingView

Avalanche price analysis: Conclusion

Our Avalanche price analysis can be concluded on a bearish note, and therefore, it is possible for the support at $52.6 to be broken. On the other hand, Bitcoin rose by almost 3 percent, and the current price is at $46.5K. To have a long-term look at the prices of major cryptocurrencies using top-notch analysis, definitely visit the Price Predictions page

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