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Avalanche could test and bounce from key support as technical indicators show oversold conditions, and a potential for volatility breakout.
Avalanche (AVAX) is weathering a chilly downturn. Over the last day, AVAX has slipped 6.6%, landing at $14.57. But the real story unfolds when looking at the week: a 16.9% avalanche of its value has investors on edge. Zooming out to the last fortnight, AVAX is down 10.6%, painting a clear picture of sustained bearish pressure. Is this a temporary snowdrift or the start of a deeper freeze for AVAX?
AVAX painted a bearish picture over the last 24 hours. Plummeting to a low around $15.70, AVAX bulls attempted a comeback, clawing back towards the $14.50-$14.60 level. But don’t be fooled by this slight rally – the undertow remains strongly bearish.
Avalanche Price Analysis
Avalanche’s daily chart paints a picture of a bear stubbornly holding on, but look closely – a flicker of hope might be emerging. Trading precariously above the lower Bollinger Band, AVAX is flirting with oversold territory. Think of it as a coiled spring, compressed and ready to potentially unleash. While the overall trend still leans bearish, this oversold signal whispers of a possible, albeit temporary, reprieve. Is this the bottom? Not necessarily, but it’s a sign the bears might be tiring, offering bulls a chance to regroup.
Avalanche
The market’s tightening grip hints at an impending storm. Like a coiled spring, volatility is compressed, ready to unleash a powerful surge. Brace yourself – history suggests this calm precedes a significant price eruption, a decisive break in either direction.
“Adding fuel to the fire, the MACD has flashed a bearish crossover, its line diving below the signal line. Downward momentum still reigns supreme, with no bullish dawn in sight. The histogram, while shrinking in its negativity, hints only at a slight easing of selling pressure, not a full-blown reversal.”
Piercing $16.76? Bulls might seize control, signaling a comeback from the brink. But beware! A plunge below $14.18 could unleash further bearish fury, confirming the downtrend’s iron grip.
AVAX Liquidation Data
Avalanche is bleeding. Recent liquidation data paints a grim picture, a massacre of bullish bets. Over the last 12 hours, $678.98K evaporated as long positions were mercilessly wiped out. Zoom out to the last 24 hours, and the carnage intensifies: a staggering $2.58M in longs liquidated, signaling a market gripped by intense selling pressure and leaving bulls reeling in the aftermath.
AVAX has been bleeding, leaving a trail of liquidated longs in its wake. Bulls are capitulating, forced to abandon ship at a loss. While bears have also felt the sting of liquidations, their numbers pale in comparison, painting a clear picture: relentless downward pressure has turned the tide decisively against the longs.
Zooming into the hourly and four-hourly charts reveals a curious twist: short positions are getting hammered. We’re seeing liquidated shorts racking up $35.76K and $58.63K, respectively. Are these fleeting price surges, trapping bears in the crossfire? Looks like someone’s getting squeezed.
If the floor crumbles and liquidations accelerate, brace for a deeper plunge. But, a sudden surge in bullish sentiment or a powerful short squeeze could ignite a dramatic comeback.
Thanks for reading Will Avalanche Bounce From Support as $258M is Liquidated From Market?
