Avalanche price analysis: despite the downward trend, the increase in trading volume shows hidden signs of an upcoming trend
- The Avalanche coin is trending down as the price action remains below the downtrend line.
- Despite the increase in trading volume on AVAX coins, the bulls continue to struggle to recover above the half line of the Bollinger Bands indicator.
- The price of the AVAX/BTC pair is in the red zone by 3.06% at 0.0008195 Satoshis.
As price action forms a pattern of lower lows and lower highs, Avalanche continues to struggle with selling momentum. On May 7, the altcoin hit a 6-month low of $21.3 after a disastrous selloff, having underperformed since the start of 2022.
At the time of writing, AVAX price is trading at $25.9 while trading below a declining trendline (White). Price action recommends selling higher with the bears empowered, so the market capitalization fell 2.9% last night to $7 billion according to CMC data.
The avalanche was unfavorable in May after breaking below the horizontal resistance, but AVAX was able to rebound from the $24.14 support level over the weekend. Moreover, when the market demand falls, the avalanche begins to march towards $28.
Meanwhile, the price of the AVAX/BTC pair is up 3.06% in the red zone at 0.0008195 Satoshis. However, the volatility of the XMR coin is increasing as the trading volume is higher than last week, but the price is not moving much. Last night, traders also saw a 33% drop in trading volume compared to the previous night.
In terms of the daily price chart, the bulls continue to struggle to recover above the half line (20-day moving average) of the Bollinger Bands indicator.
ADX peaks this week
The daily RSI indicator is trying to rally after plunging into the oversold zone. But on the other hand, the ADX is moving above the 40 mark indicating hidden bullish signals for the AVAX coin.
Buyers are expecting an increase in the avalanche coin after facing such selling pressure. Despite the low volatility, technical indicators still point to hidden bullish signals for the altcoin.
Support level – $21 and $10
Resistance level – $40 and 55
The views and opinions expressed by the author, or anyone named in this article, are for informational purposes only, and they do not constitute financial, investment or other advice. Investing in or trading crypto assets involves the risk of financial loss.