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The native coin of Avalanche, one of the largest smart contract platforms by market value, is experiencing tough times. The price has anchored below $40 and, influenced by BTC’s negativity, is now testing the $31 region. How long will this continue? What’s the next step?
Avalanche (AVAX)
BTC has fallen over 20% from its all-time high, and AVAX has also dropped to the $30 region. The four-hour chart below shows key support and resistance levels for the popular altcoin. If we see wicks below $30, this could trigger significant liquidations on the futures side, accelerating sales.
Currently finding buyers at $31.9, the AVAX Coin price is above the main support level of $30.74. A rapid decline is likely to be triggered by losing this support. In the short-term outlook, the $33.26 and $34.06 levels will act as resistance. $39.78 serves as AVAX’s EMA200 level and trend resistance.
The Ichimoku Cloud is at key resistance, and the price needs to rise above it for a potential reversal. There is a discouraging detail. The holding periods of AVAX Coin investors have returned to late 2022 levels. The decreasing holding period indicates that more investors are focusing on short-term goals. The selling trend is confirmed here as well.
Will AVAX Price Increase?
Many metrics show that AVAX Coin investors are reducing their risks and distancing themselves from the market. Fewer short-term investors can reduce immediate price volatility but also cause drops to the levels we see near $30 today. At the same time, current lack of appetite and short-term investor shortage make it easier for large sellers to push the price down.
The upcoming US inflation data, expected in a few hours, could increase volatility for Bitcoin and the rest of the crypto markets. If the feared scenario occurs, we could see a new chaos period with extreme sales down to $19. AVAX buyers are likely to attempt to hold the price in the $25-27 range. A drop below $24 could accelerate the decline by triggering stops.
