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Cryptocurrencies down 66%: Should we seize the opportunity? Analysis of July 18, 2024
After peaking at around $65, Avalanche has seen a drop of over 66%. Let’s take a look at the future prospects of AVAX.
Avalanche (AVAX) Price Situation
After hitting a low of $8.6, Avalanche began a bullish rally that saw it gain 484% in three months. It was when it hit $50 that this rally faded. It took buyers returning at $27 for the crypto to regain strength in late January 2024. Two months later, Avalanche had a 142% performance and reached a new high of $65. Unfortunately, it was at this price point that Avalanche’s price significantly changed direction. Indeed, the crypto attracted selling interest that formed a downtrend that brought its price back 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. Avalanche’s latest fluctuations thus demonstrate a bullish correction of the crypto. This allowed it to re-enter the $27 support and to remain above the value zone identified just below $26. Even if we could 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 price of the crypto and both oriented downwards. Unsurprisingly, on the momentum side of Avalanche, we see that it has significantly decreased, as evidenced by its price and its oscillators.
The current technical analysis was carried out in collaboration with Elie FT, an investor and trader passionate about the cryptocurrency market. Today, he is a trainer at Family businessa community of thousands of proprietary traders active since 2017. You will find live sessions, educational content and mutual assistance around the financial markets in a professional and friendly atmosphere.
Avalanche (AVAX) Price Assumptions
- If Avalanche price stays above $25, we could anticipate a bullish continuation crossing the $30 mark. The next resistance to consider would then be around $35 – $40. If the bullish movement continues, this could imply reaching $50. At this point, this would represent an increase of more than 80%.
- If Avalanche fails to hold above $25, we could see a return to around $22 or even $21. The next support to consider, if the bearish movement continues, would be around $19. Further down, we can see support at $16. At this point, this would represent a drop of around 42%.
Conclusion
Avalanche has experienced a period of strong growth followed by a significant decline, impacted by market factors and a drop in interest. Currently, although the crypto has shown signs of recovery, its short-term trend remains bearish, with medium-long term indicators raising concerns. Thus, it will be crucial to closely observe the price reaction at various key levels to confirm or deny current assumptions. It is also important to remain vigilant against possible “fake outs” and “market squeezes” in each scenario. Finally, remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also move quickly due to other more fundamental factors.
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Family business
Family Trading is a community of proprietary traders active since 2017, offering live sessions, educational content and support around financial markets including cryptocurrencies, with Elie FT, investor and trader passionate about the crypto market, at its side.
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