Avalanche (AVAX) in Trouble: More Downside on the Cards?

The Avalanche (AVAX) price fell below the major support level of $30, displaying a death crossover. For weeks, the token had been in a consistent downtrend

The price of Avalanche (AVAX) has been on a downtrend lately, slipping below its key moving averages and showing underperformance on the chart. For over two months now, AVAX has stayed in a closed range between $30-40 and has not showcased any impulsive moves.

Following the breakdown, the technicals indicate that AVAX is trading at its make-or-break zone of $25, which, if it holds, may allow the buyers to retain strength. However, if it fails to do so, AVAX will likely retrace the gains below the $20 mark and might reach $15 soon.

At press time, AVAX is trading at $25.20 with an intraday decline of 4.36%, reflecting neutrality on the charts. It has a monthly return ratio of -36.20% and 100.20% yearly, indicating short-term bearishness.

The AVAX/BTC pair is at 0.000394 BTC, and the market cap is $9.97 Billion. Analysts are maintaining a neutral stance and suggesting that the AVAX price may continue to face bearishness and might slip toward the $20 mark soon.

Key Points:

A death crossover is observed on the technical chart.

The price volatility curve spiked to the 0.032 mark.

The social dominance curve reveals a rise of over 234%.

According to an analysis of 26 indicators, 16 indicators have guided a sell call, while 10 were displayed neutral. None of the indicators guided a buy signal, indicating a strong downtrend for the AVAX token with further downside expected.

The price volatility curve spiked over 132% to the 0.032 mark, indicating high price volatility in the market. However, the weighted sentiment data dropped below the midline region, reflecting a negative outlook.

Despite the price drop, the social dominance curve reveals a surprising rise and surged over 234% to 1.25%, indicating an increase in users' engagement on social media platforms. However, the development activity data showed average moves and stayed below the midline region.

The Futures OI data highlights seller dominance, as the bear army continues to add short positions. The open interest data reveals a surge over 14.20% to $203.52 Million in the last 24 hours, indicating seller activity.

The immediate support levels for the AVAX token are $23.20 and $20, while the key upside hurdle is around $28 followed by $30.