AVAX Bounces Back Near $40 Following Market Turbulence

In recent days, the price of Avalanche (AVAX) has been subject to notable fluctuations.With the price bouncing off the 50-day Simple Moving Average (SMA) at $36.12 on February 24, it's clear that buyers are finding value at lower levels.AVAX prices have been trading inside a narrow range of $38.54 to a high of $39.94 in the last 24 hours,as traders look to establish a clear trend.

Avalanche's price action has been closely monitored against various moving averages and oscillators. The recent bounce off the 50-day Simple Moving Average (SMA) signals a potential support level around $36.12. However, the absence of clear momentum indicators, as seen in the flattish moving averages and the Relative Strength Index (RSI) hovering near the midpoint, suggests a neutral stance between buyers and sellers. Should the price break below the 50-day SMA, a further descent to $32 could be anticipated.

Conversely, a break and close above the 20-day Exponential Moving Average (EMA) at $39.84 could pave the way for a rally towards the overhead resistance of $42, potentially confirming an inverse Head and Shoulders (H&S) pattern. Despite the recent outage impacting market sentiment, technical analysis indicates potential bullish momentum if key resistance levels are breached.

Market Responds as AVAX nears $40

In the wake of recent developments, Avalanche's price has exhibited resilience, trading near its five-day high of $39.88. With support set around $36.25 and resistance at $39.25, the asset remains in a volatile position, subject to fluctuations driven by market sentiment and trading volumes. The current price of $39.45 reflects a 0.18% increase over the last 24 hours, with the RSI indicating a neutral market sentiment at 41.95.

The recent network outage experienced by Avalanche, lasting over five hours, initially attributed to a code-related issue causing node disruptions, elicited concerns among developers and investors. Despite swift resolution efforts, the outage, coupled with the release of locked-up tokens, contributed to a decline in market value, with Avalanche's price dropping nearly 10% over the past week to $36.

The introduction of 9.54 million AVAX tokens to the market has introduced additional pressure, potentially impacting short-term price dynamics.Avalanche's price analysis shows AVAX prices are trading in a low volatile market at the moment as indicated by the narrowing Bollinger bands.Meanwhile,the MACD line is residing below the signal line, indicating the bearishness in the market.