Key Takeaways
- AVAX has declined 14.9% over the past seven days, falling below $21.50.
- Bearish MACD crossover, negative BBP, and MFI confirm downside.
- AVAX could test $15 support unless bulls challenge the bearish trend.
AVAX, the native crypto of the Avalanche network, has entered a downward phase following its first primary bearish signal since January.
Currently, the AVAX price is fluctuating around $19.43, as the cryptocurrency has recently slipped below the critical $21.50 support level.
Over the past week, AVAX has declined by 14.89%, while trading volume surged by 26.27%, revealing growing selling pressure.
Will the bearish momentum persist, or is the coin gearing up for a rebound? Let’s find out.
AVAX Sees Big Warning
On the weekly chart, AVAX exhibits a clear bearish stance, as its Moving Average Convergence Divergence (MACD) forms a bearish crossover for the first time since January 13.
The last time it happened, AVAX’s price fell from $54.61 to $14.96 in less than three months.
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As seen below, the altcoin remains confined within a descending channel. In this case, the lower highs and lower lows continue to strengthen selling pressure.
If this bearish momentum persists, the token could slide further, testing its support zone at $17.00 and potentially extending losses toward $15.00.
Sellers Maintain Control
On the 4-hour chart, AVAX’s price displays consistent bearish momentum. The Awesome Oscillator (AO), which gauges market strength, currently reads -0.29, showing sellers’ dominance in the market.
Furthermore, the persistent red histogram bars emphasize the waning bullish presence and mounting downside momentum.
Supporting this outlook, the Bull Bear Power (BBP) indicator records a reading of -1.12, reinforcing the strong bearish sentiment.
The negative BBP reading confirms that selling pressure remains intense as bulls struggle to reclaim control.
Is AVAX Price Headed Lower?
On the daily chart, the Money Flow Index (MFI) stands at 29.00, indicating a rapid increase in sell-side activity and a decline in buy pressure.
This weakening money flow could further weigh on the price performance.
Furthermore, momentum indicators show exhaustion, with the Relative Strength Index (RSI) hovering at 30.84.
This setup indicates that the broader trend remains bearish while a short-term relief bounce may occur.
The Fibonacci retracement levels also signal AVAX’s next move. As of this writing, it trades below the 0.236 Fib level and drifts below the underlying support at $15.66.
A break below this support level could accelerate selling pressure and lower the token’s value.
On the upside, a recovery attempt could target the 0.236 Fib level near $20.51, where previous support has turned into resistance.
A sustained move above this zone would be essential to challenge the descending channel and shift sentiment toward a more neutral or bullish outlook.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
