|

AVAX price prediction: 57% pop forecasted once Avalanche price hits rock bottom at $50

  • Avalanche price sees a bitter rejection on the topside on Sunday. 
  • AVAX price sheds near 3% in ASIA PAC session.
  • Expect a further dip towards $50 before AVAX price sees a rally kicking off.

Avalanche (AVAX) price is not in good shape, certainly not with the strong rejection bulls got on the topside at the highs on Sunday at $61.62. From that point on, AVAX price has been tanking again, shedding 3% of its value already or $1.7 on intraday trading during the ASIA PAC session. A floor does not look to be present nearby, and although the Relative Strength Index (RSI) is trading oversold, expect to see yet another push lower towards $50.93, which could be the turning point for the downtrend into an uptrend.

AVAX price needs to shed 18% before gaining 50%

Avalanche price is set to drop like a stone as the recovery on Sunday from bulls was a move that got cut short quite quickly with a firm rejection against $61.62, which is a historic pivotal level. Although the RSI is trading below 30 in oversold territory, AVAX price does not have any supportive handles nearby to bounce off, or to at least gather some effort from bulls to overhaul the selling power of bears. It looks as if Avalanche price will first need to look for solid support,  before it can spark a turnaround.

AVAX price first needs to dip lower to look for a level where bulls can present a united front, joining forces and generating the volume needed to overtop the selling pressure that currently weighs. Once AVAX price hits $50.93 expect to see a turnaround. That level coincides with the red descending trendline and a pivotal historical level, ideal for a bounce and rally back up towards, first $61.62, and then subsequently $81.

AVAX/USD daily chart

AVAX/USD daily chart

Already this first trading day of the week, a few heavyweight headlines came out of Germany committing to cut its dependency on Russian gas, but on the back of that, Hungary is set to veto that move, possibly adding to more unresolved issues and no new sanctions to come from the EU bloc as division only enlarges its weaknesses. That tail risk is set to grow further as the Russian squeeze on Ukraine persists. Expect the dollar to further gain weight and weigh on AVAX price like gravity on people, pulling price action towards $46.75.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

More from Filip Lagaart
Share:

Editor's Picks

Bitcoin Weekly Forecast: BTC retreats as macro headwinds grow
Bitcoin (BTC) remains under pressure, down over 4% this week and trading around $76,900 at the time of writing on Friday. Institutional demand shows signs of weakness as spot BTC Exchange Traded Funds (ETFs) are on track to end their three-week inflow streak, recording nearly $500 million in net outflows through Thursday.
XRP falls toward key support as macro uncertainty, weak momentum cap recovery
Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.
Crypto Today: Bitcoin, Ethereum, XRP stabilize at lower levels amid ETF outflows and macroeconomic risks
The broader cryptocurrency market is rising on Friday, with Bitcoin (BTC) trading above $77,000 after testing lower support near $76,500. Ethereum (ETH) shows signs of stability, hovering above the support provided at $2,400 despite capped upside at $2,500. Meanwhile, Ripple (XRP) holds above $1.33 after three straight days of declines, reflecting growing headwinds due to macroeconomic uncertainty.
Bitcoin pulls back as another golden cross fails to deliver
Earlier this week, Bitcoin formed a golden cross, a technical signal that occurs when the price’s 50-day moving average rises above the 200-day moving average and is conventionally viewed as a precursor to a bullish rally. Historically, however, that’s often not been the case.
Bitcoin: BTC retreats as macro headwinds grow
Bitcoin (BTC) remains under pressure, down over 4% this week and trading around $76,900 at the time of writing on Friday. Institutional demand shows signs of weakness as spot BTC Exchange Traded Funds (ETFs) are on track to end their three-week inflow streak, recording nearly $500 million in net outflows through Thursday.