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Avax price has shattered the yearly lows and lost all of its gains it made 2023. The current candle is already down by 22% today. The candle has shattered the support level of $10.80 and is now headed toward the next support which resides at $9.50 level. The bullish rally for Avalanche price started during the beginning of 2023 when price started to rise from the low of $10.64 level and formed an annual high at $22.79.
The move caused a rise of roughly 111% in a span of almost a month. The bullish move was then corrected by the price and bears pushed the price toward the $14 level. AVAX price formed support near the $14 level and began its journey to retest the annual highs but the move did not turn out to be successful. The move was halted at $12.30 level and since then price has been falling.
On Friday, Avalanche launched Arcad3 to help Web2 Developer to blockchain gaming. It is intended to support traditional gaming studios that wish to enter the world of Web3 by helping them with marketing, onboarding and tokenomics. Arcad3 will help participants with tokenomics by ensuring that in-game economies are compliant and stable.
Avalanche price trades below all the major EMAs – 20,50,100 and 200-day indicating bearish momentum in the price. Chaikin money flow score is -0.02 suggesting weakness in the market. RSI has entered the oversold zone indicating a possibility of short term pullback or reversal. The price has reached the lower band of bollinger indicating a chance of short term pullback.
The bearish momentum is strong and price firstly needs to form a support. The long/short ratio is 0.88 with 46.9% longs and 53.1% shorts in the last 24 hours indicating investors are losing interest in avalanche and are favouring the sell side. The price needs to form a support. The price on the lower time frame has started to form support and the candle has left a long wick to the downside indicating rejection from $10 level.
The market structure and price action for Avalanche is bearish and price needs to form a support on the higher time frames to protect the price from further downfall. The technical indicators are favouring the selling side but AVAX price has started to turn bullish on the lower time frame so traders should be cautious going for shorts.
Major support: $10.80 and $9.50
Major resistance: $13.80 and $14.90
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