AVAX Price Prediction: Is a 30% Dip Looming?
Key Insights:
- AVAX’s price is down over 10% in the last 24 hours.
- Its price has crashed by more than 88% from its all-time high of $146.22 set in November 2021.
- The token ranks 17th in the list of cryptocurrencies worldwide by market capitalization.
AVAX, the native token of the open-source blockchain designed for the development of decentralized applications (dApps), rallied 57% between June 19 and June 26, setting up a swing high at $22.05.
However, bearish momentum has since taken over and AVAX‘s price has crashed by more than 88% from its all-time high (ATH) of $146.22 set in November 2021.
Price Action
AVAX’s price is down 25% from its swing high of $22.05. Prices slumped once the crypto was unable to push past the $21.5 mark.
The coin is currently trading at $16.52 and ranks 17th in the list of cryptocurrencies worldwide by market capitalization at $4.6 billion. Its price is down over 10% in the last 24 hours.
The past few days of trading saw the 38.2% retracement level at $18.86 serve as support, but a retreat from this level took AVAX down to $20.5.
The Avalanche token slipped to $20 on June 27 after a short period of consolidation above $21. On this day, its price was briefly trading below the moving average convergence divergence (MACD).
The following day, on June 28, AVAX failed to break above the $22.00 resistance level and slid to the $19.00 mark as selling pressure increased in the short-term. The exponential moving averages (EMA) were trading above the mean position and their low gradient suggested decreased trading activity.
Also, the project’s total value locked (TVL) in decentralized finance has crashed from over $11 billion at the start of this year to $2.6 billion.
Technical Indicators
The Bollinger Bands were moving in a wide channel until June 25 but converged as the price action stagnated around the $20 mark.
Support lies at the $13.86 level. If AVAX’s price produces a twelve-hour candlestick close below $14.75, the crypto could crash 30% to the $10.70 support barrier.
Technical analysis shows that short-term sentiment on AVAX is bearish, with 0 indicators displaying bullish signals compared to 25 bearish signals at the time of writing.
The daily simple and exponential moving averages are giving sell signals, while the relative strength index (RSI) stands at 37.8.
An RSI reading of 30 or below indicates an oversold or undervalued condition, while a reading above 70 would suggest the asset is becoming overvalued or overbought.
In terms of an Avalanche crypto price prediction, AVAX could see its price rising to $23.736 by August 2022, reaching $72.876 in January 2024 and hitting $108.377 by January 2025.
