Avalanche blockchain showcases a huge potential growth, but the price momentum of its AVAX token has declined by a significant margin. Avalanche, falling back closer to the pre-June breakout, it is trading at a high premium from the one-year prior support level.
Breaching the $9 level would indicate a fundamental decline in investors’ belief in the AVAX token with a long-term negative outlook. As of now, the LTP of AVAX is $18.09, which is close to 2.37% higher compared to 24 hours ago.
Avalanche blockchain has a market capitalization of $5,094,108,228, with just 39% of its token volume in supply. Ranking at the 16th position, it has managed to draw several Ethereum-based applications on its blockchain out of its sheer transaction fees.
ETH turning expensive is being adversely advantageous for other leading smart contracts and dApps supporting blockchain, such as Avalanche. There is a high probability that 50% of its AVAX token are kept aside for staking rewards which will aid in its growth since it is offering good returns.
Avalanche makes the third attempt since the June 2022 downfall to overcome its immediate resistance that syncs up with the 50-day exponential moving average. Will it be able to breach the 50 Days EMA level? Find out in our Avalanche coin price prediction.
Avalanche has hit a new bottom in June 2022 but fails to hit its immediate resistances that lie together with the 50 and 100 EMA curves. Since June, the wave pattern in the AVAX momentum hasn’t been able to jump out of the resistance, creating a panic situation.
The huge spike in the transnational volumes led to an increase in the RSI level from overbought zones to 46 on the histogram. MACD is moving closer to a bearish crossover that would pull the value of the AVAX token even below the latest support of $13.3.
Avalanche has jumped significantly from this support level showcasing a breakout potential, but the day it makes a double-digit gain, a profit booking price action follows it. Hence, AVAX, despite its lower price and breakout potential, seems negative in the short term.
Since Avalanche jumped tremendously after the dip in June 2022, investors must be expecting a repeat of this price trend but having lost so much of its value; there is limited uptrend potential.