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Avalanche's native token AVAX is currently facing a critical moment in the market. After a week that saw a 15% decrease in its value, AVAX is trading at $47.25, according to the latest data from the chart. The cryptocurrency has been trading sideways in the last 24 hours, with a significant trade volume of $704.81 million within the same period.The market capitalization has experienced a downturn, decreasing further to $18,044,805,644.
The AVAX/USD 4-hour chart reveals a challenging market for Avalanche as it trades hovers above $47.25, with a slight uptick of 2.05%.The 20-period Simple Moving Average (SMA) on the Bollinger Bands (BB) indicator shows a value of $54.31, suggesting that the current price is below the average, indicating a bearish phase. The Bollinger Bands are also widening, which could signal increased market volatility and potential price fluctuations.
The Relative Strength Index (RSI) is currently at 48.89. This value is near the midpoint of the RSI range, indicating a neutral market sentiment without clear overbought or oversold conditions.Meanwhile,the Williams %R indicator, which is similar to the RSI, is at -81.89, pointing towards an oversold market. This could suggest that the market may be due for a reversal or at least some consolidation in the near future if buyers step in.
The current price of AVAX is closer to the lower band of the Bollinger Bands, hinting at a potential support level around $47.81. If this level holds, we could see a consolidation or an upward price correction. Conversely, if the price breaks below this support, it could lead to further declines.
A move above the middle Bollinger Band (20-period SMA) could signal a shift in momentum, possibly leading to a test of upper resistance levels, whereas a continued downtrend might take the price to test lower support zones.If AVAX price can muster a reversal and break above the current downtrend witnessed, there is potential for AVAX to climb back to $50. Achieving this could set the stage for a rally up to the next significant resistance level at $65.
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