Avalanche (AAVE) Plunges Over 10% Amid Crypto Bloodbath
Avalanche (AAVE) is suffering from the bloodbath seen across the cryptocurrency market amid risk-off sentiment due to the coronavirus new variant, now exchanging hands at $233.
The price consolidated below the 50-period simple moving average at the H4 chart following a dynamic resistance found around that neighborhood.
As the sell-off intensifies in the DeFi coin, its market cap declined as well and now stands at $3.14 billion according to CoinMarketCap’s metrics. Still, in the last 24 hours, its daily volume remains up by 18.27% to hover at around $342 million.
Sell-off is on The Air
The technical perspective remains on the bearish side as Avalanche gathered bearish momentum after clearing out the 200-period simple moving average at the beginning of the month.
However, that stagnation stage has now been resolved, and it seems like AAVE could be on its way to refreshing its monthly lows as the selling pressure persists.
As of now, a bottom has not been found yet as the price keeps making a bearish construction of lower lows and lower highs across the board, although the RSI indicator is flashing an oversold condition at this stage.
With that said, the odds favor the bears to take the price towards the $200 psychological level in a first degree, followed by the $177 zone.
However, on the bullish side, once AAVE breaks above the resistance zone of $280, the recovery towards the 200 SMA should be on the cards for the short-term buyers, and eventually, the $300 level becomes the next tough nut to crack to the upside.
Beyond that zone, the crypto could point towards the resistance zone of $340, followed by $360. Avalanche should bolster the overall bullish perspective after cracking the $400 threshold, as it later can materialize a golden crossover of the moving averages at the current timeframe, eyeing the $450 area.