Avalanche Price Drops 5% But Bullish Sentiment Remains Strong Following Increased Trading Activity
The Avalanche price decreased by 5% in the last 24 hours. It is now trading at $27.25 as of 4:50 a.m. EST, on a 15% surge in trading volume to $344,000, pushing the market cap to $10.7 billion. As Bitcoin hovers around $69,000 this Monday, crypto intelligence tracker IntoTheBlock reports that traders feel positive about AVAX.
According to IntoTheBlock’s GIOM metric, 21.74% of Avalanche holders are currently profitable at $27.25, which indicates a bullish sentiment among traders. Daily transactions on Avalanche have reached 1.23 million, showing strong usage and demand for the token. Plus, $253.11 million has been moved from Ethereum to Avalanche, reflecting growing confidence in the DeFi network and supporting its long-term growth.
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Avalanche looking extremely bullish after breaking out of falling wedge pattern🧐
Successful breakout could lead to 2x price increase📈
Keep an eye on volume for confirmation👀
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. pic.twitter.com/ahdMGjAE2n— Whales_Crypto_Trading 🐋 (@WHALES_CRYPTOx) July 30, 2024
Additionally, large traders, or whales, are withdrawing AVAX from exchanges, which could help reduce selling pressure. An Instance is when QCP Group recently withdrew over 75,000 AVAX worth $2.18 million from Binance. This reduction in supply on exchanges could ease selling pressure and boost prices.
Avalanche has been on a downtrend since its peak of $65.39 in March. However, it has shown signs of recovery since July 13, above the key support level of $25.53.
Avalanche Price Statistics
- Avalanche price: $27.25.
- Market cap: $10.7 billion
- Trading volume: $344 thousand
- Circulating supply: $394.9 million
- Total supply: $720million
Bears Continue to Hold the Upper Hand
Avalanche price has been experiencing a steady downward trend, with the bears investing by pushing the price downwards at the resistance level of $32.5748. The daily chart shows no chance of the bears giving up soon on pushing the price much lower due to the descending triangle pattern formed.
Currently, the market trades below the 50-day simple moving averages (SMA) and the 200-day SMA on the daily chart. The moving averages act as a key resistance level, signaling the continuation of the bearish momentum, which will allow the sellers to continue profiting more.
The Relative strength index (RSI) is trading sideways, and the bears may continue with their momentum. Currently, the RSI is flowing below the 50-midline level and seems to be dropping lower to the 30-oversold level. If the RSI continues to drop, the market might create a new all-time low.
Additionally, the Moving Average Convergence Divergence (MACD) also signals the continuation of bearish momentum. The blue line is seen to have been surpassed by the orange signal line, indicating a potential bearish momentum. The increase in the size of the red bars in the MACD also supports the likelihood of a bearish rally.
Avalanche Price Prediction
The ongoing battle between bearish and bullish forces will be crucial in determining the short-term direction of Avalanche’s price. At present, the bears are exerting significant pressure on Avalanche’s price, pushing it lower and thwarting any attempts by the bulls to drive the price upward.
This bearish trend suggests that if the current selling momentum continues, the price could fall to a target level of $21.0749. Conversely, if the bulls are able to shift the market dynamics in their favor and regain strength, they could potentially reverse the trend. This resurgence could drive the price up to a target of $32.9069, indicating a substantial rebound from current levels.
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Charles Kibue
Charles Kibue is a cryptocurrency researcher and writer with published works on Crypto2Community and a range of other sites. He has also worked as a technical writer, researching NFTs and crypto projects. Charles is an English Literature graduate residing in Kenya. He possesses additional expertise in market analysis and offers accurate and reliable insights, staying up-to-date with the latest developments in the crypto industry. Beyond his professional pursuits, Charles enjoys hiking and horse riding in his leisure time.
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