Avalanche (AVAX/USD) has lost 90% of its value since the November 2021 high. The token has been falling alongside other major cryptocurrencies in the bear market. The bear momentum is still high, with the cryptocurrency trading at $15. In the past one week, AVAX has lost more than 5% and is looking to head to $10. What’s happening?

Avalanche has been touted as an alternative platform to Ethereum for DeFi and NFTs. However, the two nascent blockchain sectors have been hit this year. According to data by Dune Analytics, NFT’s weekly trading volume has dropped by a massive 98% this year. The total trading volume at the end of January 2022 was $6.2 billion but now stands at $114. 

NFTs and DeFi decline has been a significant blow to blockchains like Avalanche. That’s because the blockchain had crafted a name around the evolving sectors. Consequently, it may take time before investors flock back, suggesting that a bear market could last longer. Going by the recent decline, bears are in control of AVAX, with a lower price on the horizon.

Source – TradingView

The daily chart shows AVAX trades on a system of lower lows and lower highs on a weak momentum. The MACD indicator is deep in the bear zone.

At the current level, AVAX is trading at a potential pivot point. However, momentum is weak, giving bears a chance to take the cryptocurrency lower.

With the weak momentum, we rate a reversal chance at $15 very low for AVAX. The cryptocurrency is not a buy since it may continue to slide, finding support at $10. The support is crucial since it marks the zone where the crypto boom started in 2021.

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy AVAX with eToro today Disclaimer

Coinbase is a global cryptocurrency exchange. Its platform is well designed for beginner investors and it offers a wide range of coins, as it has over 100 to choose from. Coinbase has high level security built into the platform, a range of diverse features to use and it offers its users options for storing their crypto, such as being able to store coins on the Coinbase exchange.

Buy AVAX with Coinbase today Disclaimer

The post AVAX to $10? A bleak technical outlook shows why buyers have to keep off for now appeared first on CoinJournal.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

211 +