Avalanche Creates a Negative Trendline; Will AVAX Breakout?
When it comes to potential replacements for Ethereum, in case the network supposedly goes dark, the names would include Avalanche. Its strong growth, higher transaction speeds, and lesser gas fees make it unique among the smart contract and dApps supporting blockchain. Having created different chains for different sorts of transactions, especially the X-Chain, which uses the latest iteration of a DAG. P-Chain of Avalanche is used to facilitate validators and connect their rewards. Finally, the last chain, or the C-Chain, corresponds to the contract chain, which considers all the transaction tokens used in De-Fi and dApps.
AVAX currently ranks 14th in terms of market cap and continues to develop its blockchain, enrolling new enterprise connections. Future scalability and growth could aid in the growth of the AVAX token, the sole medium of paying for gas fees at just 0.001 AVAX. Owning 1 AVAX of $23 would allow a user to undertake 1000 transactions.
Avalanche’s token has found itself in a tricky situation, which has entrapped a large majority of cryptocurrencies in August 2022. The consolidation zone, where neither buyers nor sellers can fully control the movement direction. The outlook remains similar to last week. Check out Avalanche price prediction and know about the long-term expected performance of the token.
The price action hasn’t been able to deliver any distinct direction to the token values as consolidation has forced buyers and sellers to wait for a breakout. The decreasing transaction volumes confirm lower action in recent days. As such, opportunistic movement can happen as soon as a breakout is registered, but the sentiment for the short term is inclined towards a negative direction.
While RSI maintained its strength, the MACD indicator has created a bearish crossover pattern that will push the token value even lower. Resistance for buyers is strong at $26.26 and $30.65. On the other hand, support is available at $20.13 and $13.35, respectively.
AVAX token hit its low during the first week of June 2022 with increased selling volumes. Since June, the price action entered into consolidation and then towards slightly upside movement was witnessed as buying started. Despite the volumes not meeting even half of the negative trend, the action is good enough to induce buying for AVAX.
The trend since the last three weeks is signaling more constraint and focus before entering into the AVAX token, as the week ending on July 24 witnessed selling at peak values. The week ending on July 31 saw support from the bottom and strong rejection from the top, creating larger wicks and a very small body. The indicator for a prolonged consolidation is confirmed here. The next three days of price action will be critical to create an engulfing candle and establish a price action for the AVAX token.
