The price of Avalanche (AVAX) has fallen below the psychological mark of $50 amid a broader market pullback. Will this bearish trend push the price below $45?
Amid the broader market pullback, Avalanche’s market price has dropped by 2.19% in the past 24 hours. This has resulted in a price fall under the $50 psychological mark while the project maintains a market cap of $20.41 billion.
As the selling pressure increases, the price chart reveals a breakdown of long-coming support. Will this result in an extended crash? Let’s find out.
Avalanche (AVAX) Price Analysis
On the 4-hour chart, the AVAX price formed a rising channel pattern. However, amid the broader market pullback and increased volatility, a brief consolidation near the support trendline led to a bearish breakdown.
With three consecutive bearish candles, AVAX is now trading at $49.70. These bearish candles signal a downtrend continuation below the broken support trendline. Additionally, the price has dropped below the 50 EMA on the 4-hour chart.
As the price breaks below this crucial psychological level, the bearish outcome from the consolidation indicates a potential downtrend continuation. Due to increased selling pressure, the MACD and signal lines have failed to regain positive alignment.
Thus, the bearish trend continues on the MACD, and the signal lines, along with negative histograms, are reappearing, signaling an increase in bearish momentum.
The downturn in the 20 EMA on the 4-hour chart warns of a potential bearish crossover with the 50 EMA. Therefore, technical indicators signal a sale for the AVAX token.
AVAX Price Targets
As the selling pressure grows, AVAX is inching closer to the crucial dynamic support of the 100 EMA line. The dynamic average line is priced at $46.95, followed by the crucial support of the 200 EMA at $41.68.
On the positive side, the bulls could regain trend control if AVAX gives a lower price rejection to sustain the closing price above the $50 psychological mark in the 4-hour chart.
In such a case, closing above the broken support trendline would be necessary for the price rally to continue. The uptrend could potentially surpass the 7-day high of $55.86 and test the $60 psychological zone.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
