The price of Avalanche’s AVAX token has seen a slight 0.91% increase over the past 24 hours to $9.93, according to the latest market data. Despite some recent volatility, AVAX remains one of the top 15 cryptocurrencies by market capitalization, currently valued at $3.50 billion.
In this report, we will analyze the latest Avalanche price action and market data to uncover key insights for traders and investors. Keep reading to learn about the short-term and long-term trends, trading volume, and predictions for AVAX’s future price.
Taking a look at the 24-hour market data provided, we can see that AVAX’s trading volume over the past day totaled $52.30 million. This represents a fairly low level of activity compared to previous periods, indicating decreased interest in trading the token recently.
Over the past hour, AVAX’s price declined a marginal 0.04%, continuing its sideways consolidation. Zooming out further, the token remains down 2.53% over the past week of trading.
More concerning is AVAX’s substantial 40.48% loss over the past 6 months. The token hit its all-time high price of $146 in November 2021 and has struggled to regain its footing since. However, at $9.93, AVAX’s price today is still up significantly from its 2022 low around $7.50.
Now let’s take a deeper look at Avalanche’s recent price trends and trading behavior to make sense of the data.
In the past few weeks, AVAX has found itself rangebound between support around $8.50 and resistance at $11. This consolidation comes after a steep selloff from June through mid-July, where AVAX plummeted from above $20.
The recent sideways price action appears to be setting the stage for AVAX’s next major price breakout. However, trading volume has declined during this consolidation period. For a convincing breakout, traders often want to see an increase in volume for confirmation.
Looking at technical indicators, AVAX is testing its 20-day moving average near $10 currently. This short-term moving average line will be important to watch over the coming days and weeks. A decisive break above with volume would likely spark upward momentum, while a drop below may see selling pressure intensify.
With AVAX appearing oversold on longer timeframes, the path of least resistance seems to be a bounce higher off its recent lows. The token will need to reclaim the psychological $10 level convincingly in order to build any sustainable upside momentum.
Pay close attention to the moving averages and price levels mentioned earlier for clues on which direction AVAX will trend next. Use caution buying into strength until the chart signals confirm a bullish reversal.
Zooming out to the six-month timeframe, Avalanche remains in a clear downtrend since topping out at $146 last November. The 80%+ drawdown highlights just how painful this crypto bear market has been.
However, according to on-chain analytics, developer activity on the Avalanche blockchain remains robust. The network continues to innovate and add capabilities, including recent upgrades focused on scalability and decentralization.
With the AVAX token appearing oversold from a long-term perspective, any return of positive sentiment to crypto markets could see the asset stage a powerful recovery rally. The downside from current levels seems limited, while the upside potential is much greater.
Patient, long-term investors could do quite well accumulating AVAX at under $10 if they have a multi-year investment horizon. As with all volatile crypto assets, maintaining strict risk management is crucial.
Avalanche reached a peak price of $146 last November amidst peak excitement and speculation in crypto markets. While it may take years to return to such euphoric highs, AVAX gaining traction back to the $50+ level in the next 12-18 months certainly seems achievable.
Much depends on how quickly inflation cools and the Fed pivots to less aggressive interest rates. This macro environment has been kryptonite for crypto assets in 2022. As conditions improve, renewed investor enthusiasm could lift Avalanche back towards previous highs. Exercise patience and discipline when buying near multi-year lows.
In summary, Avalanche appears to be consolidating in the low $9 range after sharp declines in 2022. Buying volume needs to pick up again to confirm the next major price trend. However, oversold technicals point to a potential bounce higher in the near-term.
My prediction is that AVAX will break out of its current range to the upside within the next 1-2 months. Initial targets are the 20-day moving average around $10.50, then the psychological $15 level which may act as resistance.
Ultimately, I expect AVAX can reach the $25-$30 zone over the next 6-12 months as macro conditions improve. Patience and risk management are key to navigating these volatile crypto markets. Consider starting to accumulate AVAX during periods of fear and weakness. The long-term growth prospects for Avalanche remain bright.
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