Market
Will Avalanche’s $30 Support Trigger Major Market Movements?
In today’s analysis, we will delve into the recent price action of Avalanche (AVAX) and its on-chain activity to understand the underlying trends and potential future movements.
Bitcoin’s 22% correction from all-time highs has led AVAX to trade near the critical $30 support level, instilling fear among holders. Curious about the reasons behind this behavior? Let’s examine the details.
AVAX Is Trading Just Above a Critical Support Level
The chart below shows Avalanche’s price action in the 4-hour timeframe. The red lines highlight key support and resistance levels. Currently, the price is around $32. A decline below the $30 range could trigger a cascade of liquidations, leading to further price depreciation.
The $30.74 level, near the $30 mark, aligns with the 0.618 Fibonacci line and is a crucial support. Monitoring these levels will help investors and traders anticipate potential price movements.
Key resistance levels to watch are $33.26 (200 EMA), $34.06 (100 EMA), and $39.78. The EMA 100 and 200 in the 4-hour timeframe are significant as they can act as trendline resistance in the bearish trend.
Additionally, the Ichimoku Cloud is currently in a critical resistance zone. If AVAX breaks above the cloud, it could signal a price recovery.
Avalanche Analysis: Exploring Essential On-Chain Metrics
The average holding time of Avalanche has dropped to levels seen during the Q4 2022 bear market. This suggests that investors hold their coins for shorter periods, indicating increased trading activity and reduced confidence in holding AVAX long-term.
As the holding time decreases, it shows that more investors are trading AVAX rather than holding it. This increased activity can lead to higher volatility and price fluctuations.
The decrease in holding time reflects a bearish market sentiment. Investors are less confident in AVAX’s long-term potential, opting to trade in and out of positions more frequently.
At the moment of writing, more than 2 million small AVAX holders are at break-even or in losses. This situation could increase selling pressure as these investors might decide to sell to cut their losses, further driving the price down.
The majority of addresses hold between 0 – 1 AVAX and 1 – 10 AVAX, indicating a large number of small holders. The stability of larger holdings suggests that significant investors are maintaining their positions.
Many small holders at break-even or losses reflect a cautious market sentiment. These holders are more likely to sell under pressure, which could lead to increased volatility and further price declines.
The number of addresses holding AVAX for less than one month has decreased significantly. This means holders who bought AVAX recently are exiting the market and cutting their losses.
While fewer short-term traders can reduce immediate price volatility, it also means there is less buying support from this group. This can make the price more susceptible to downward pressure from other market segments.
Strategic Recommendations Amid Bitcoin’s Influence
- Bearish to Neutral Outlook: AVAX’s price struggles below the $30 support level, showing weakness after Bitcoin’s correction from all-time highs. This has led to fear among holders, with short-term investors exiting to cut losses.
- Bitcoin’s Influence: If Bitcoin continues its upward momentum and approaches its all-time highs, it could positively impact AVAX’s price.
- Conditional Support: Should Bitcoin fall further, AVAX might experience a notable mid-term price decline, potentially dropping below the critical $30 support level.
- Price Projections and Recommendations: In a bearish scenario, AVAX could fall to $25 if Bitcoin’s price declines. To reduce risk exposure, traders should wait for the price to drop below $30 before buying. The ideal buy range would be around $25-$27 for an optimal entry position. Setting a stop loss at $24 is advisable to manage potential downside risks and aim for a sell price of $40-50 to capitalize on the next upward wave.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Artificial Superintelligence Alliance (FET) is experiencing a prolonged bearish trend, pushing its price closer to the critical $0.966 support level. This sustained downward pressure has raised concerns among investors, as the cryptocurrency continues to extend its bearish momentum.
The $0.966 resistance mark now serves as a significant point of interest, determining whether FET can reverse its current trajectory or continue its descent. Market participants are closely monitoring these developments, analyzing technical indicators and market sentiment to gauge the potential for a rebound or further decline.
This article aims to analyze the extended bearish trend affecting the digital asset and its impact on the cryptocurrency’s price as it approaches the $0.966 resistance level.
FET’s price was trading at around $1.30 and was down by 3.10% with a market capitalization of over $3 billion and a trading volume of over $99 million as of the time of writing. There has been a 24-hour decrease of 3.28% and 29.79% in FET’s market capitalization and trading volume respectively.
FET Price Under Bearish Pressure
Currently, FET on the 4-hour chart is actively bearish trading below the 100-day Simple Moving Average (SMA) and the bearish trend line, dropping toward the crucial $0.966 resistance mark.
The 4-hour Composite Trend Oscillator also confirms more bearishness for FET as both the signal line and the SMA of the indicator continue to trend inside the oversold zone.
On the 1-day chart, it can be observed that FET is very bearish trading below the 100-day SMA and the trend line. Following a rejection at $1.862, the price of FET has been on an extended bearish move heading toward the $0.966 support level.
Lastly, the 1-day composite trend oscillator signals that FET may extend its bearish trend toward the $0.966 support level as the signal line and the SMA are still trending in the oversold zone.
Will FET’s Price Breakthrough Or Face A Rejection
Conclusively, it can be noted that as the price of FET continues to move toward the $0.966 resistance mark, it may break through its bearishness or face rejection and begin to rise.
Therefore, exploring the possible outcomes of the coin, it was discovered that if FET’s price reaches the $0.966 support level and breaks below, it may continue to decline to test the $0.459 level and potentially move on to challenge other lower levels if it breaches the $0.459 level.
However, if the crypto asset faces rejection at the $0.966 support level, it will begin to ascend toward the $1.862 resistance level. When this level is breached, it may continue to climb to test the $2.564 resistance level and may move on to test other higher levels if it breaches the $2.564 level.
Bitcoin price failed to continue higher above the $63,650 resistance zone. BTC is now correcting gains and might revisit the $60,850 support.
- Bitcoin started a downside correction from the $63,650 resistance zone.
- The price is trading below $62,500 and the 100 hourly Simple moving average.
- There is a connecting bearish trend line forming with resistance at $61,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair might struggle to start a fresh increase above the $62,250 resistance zone.
Bitcoin Price Dips Again
Bitcoin price struggled to extend gains above the $63,650 and $63,800 resistance levels. A high was formed at $63,798 and the price started a downside correction.
The price declined below the $63,000 level. The bears were able to push it below the $62,500 level and the 100 hourly Simple moving average. There was also a move below the 50% Fib retracement level of the upward move from the $59,951 swing low to the $63,798 high.
Bitcoin price is now trading below $62,500 and the 100 hourly Simple moving average. There is also a connecting bearish trend line forming with resistance at $61,850 on the hourly chart of the BTC/USD pair.
The bulls are now trying to protect the $61,400 zone and the 61.8% Fib retracement level of the upward move from the $59,951 swing low to the $63,798 high. If there is another increase, the price could face resistance near the $61,850 level and the trend line.
The first key resistance is near the $62,250 level. The next key resistance could be $62,500. A clear move above the $62,500 resistance might start a steady increase and send the price higher.
In the stated case, the price could rise and test the $63,250 resistance. Any more gains might send BTC toward the $63,650 resistance in the near term.
More Losses In BTC?
If Bitcoin fails to climb above the $62,250 resistance zone, it could continue to move down. Immediate support on the downside is near the $61,400 level.
The first major support is $60,850. The next support is now forming near $60,500. Any more losses might send the price toward the $60,000 support zone in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $61,400, followed by $60,850.
Major Resistance Levels – $62,250, and $62,500.
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