The post AVAX at a Critical $19 Support: Will It Sustain or Face Potential Downside? appeared on BitcoinEthereumNews.com.

Avalanche (AVAX) is currently testing a critical support level of $19 amidst bearish signals, raising concerns about a potential downward trend. The consolidation pattern observed on the 4-hour chart indicates market indecision, with traders analyzing both bullish and bearish cues. According to a recent analysis from COINOTAG, “the high percentage of underwater investors could lead to increased selling pressure if the crucial support level is breached.” This article examines Avalanche’s current price action, on-chain metrics, and investor sentiment as it tests the critical $19 support level. Current Price Actions of AVAX: A Closer Look at Market Dynamics At this moment, AVAX is trading around the critical support level of $19, which has demonstrated resilience in past price movements. A symmetrical triangle pattern has emerged, indicating a market stalemate where both buyers and sellers await a decisive move. The significance of the $19 support is further emphasized by its historical importance as a floor for previous downturns. An upward breakout from the triangle could see AVAX experiencing a short-term rally, but downside risks loom large if this support level fails to hold. Source: TradingView Deciphering On-Chain Signals: Bearish Trends in Focus Analyzing the on-chain metrics for AVAX reveals a predominantly bearish outlook among investors. The current net network growth is reported at -0.67%, indicating a subtle decline in user activity. Meanwhile, the “In the Money” metric has decreased by 0.79%, resulting in a lower number of profitable investors. Moreover, the concentration rate has dipped to -0.19%, suggesting minimal shifts in token distribution. The decrease in significant transactions by 1.87% further reinforces the sentiment that large investors show little inclination towards bullish trends at this juncture. Source: IntoTheBlock Influence of In/Out of the Money Data on AVAX’s Price Movement The in/out of the money analysis highlights a significant bearish sentiment surrounding AVAX—with…

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Filed under: News - @ March 10, 2025 6:14 am