AVAX Price Outlook: Analyzing Bearish Trends and Potential Support Levels
The post AVAX Price Outlook: Analyzing Bearish Trends and Potential Support Levels appeared on BitcoinEthereumNews.com.
The Avalanche (AVAX) cryptocurrency is currently facing significant bearish pressure, with its short-term price dynamics hinging on crucial market indicators. Trading at approximately $36.72, recent trends show a marked decline in open interest (OI), indicating waning confidence among traders. According to Coinglass, “The inability to sustain projections above $55 in November highlights a concerning trend for AVAX’s price action.” AVAX faces bearish sentiment with crucial market indicators pointing towards potential downside pressure as the cryptocurrency trades around $36.72. VPVR indicates strong resistance levels for Avalanche Recent analysis of the Volume Profile Visible Range (VPVR) reveals a substantial concentration of trading activity around the $40 to $42 levels. This cluster signifies robust resistance, where traders executed numerous buy and sell orders in the past. Despite multiple attempts to ascend past this range during December’s market rally, AVAX met with consistent rejections, further solidifying the bearish sentiment surrounding the altcoin. Source: Coinglass On the downside, VPVR has pinpointed a critical support level at $27, confirmed by historical trading patterns demonstrating higher activity during previous accumulation phases. If AVAX breaches this support, it could open the door to further declines, potentially targeting the $25 level. The combination of a failure to maintain momentum above $55 and the development of lower highs and lower lows points toward a persistent bearish trajectory unless a significant market catalyst emerges. Gauging market participation trends Recent statistics illustrate a notable decrease in open interest (OI), signaling a drop in speculative trading interest as price levels dwindle. The decline in OI aligns with AVAX’s struggle to maintain bullish momentum above the $55 mark recorded in November. Source: Coinglass Typically, a falling OI during a price correction signifies that traders are closing long positions, reflecting uncertainty and bearish sentiment. This trend indicates traders might be adopting a wait-and-see approach, expecting…
Filed under: News - @ January 13, 2025 5:12 am