Avalanche (AVAX) Price Nosedived by 35%, Struggles to Hold the $20 Support Zone

Avalanche (AVAX) price experienced a major downtick and lost over 35% in the last two weeks. Amidst the market's significant selloff, AVAX faced a sharp drop

Avalanche (AVAX) price experienced a major downtick and lost over 35% in the last two weeks. Amidst the market’s significant selloff, AVAX faced a sharp drop and noted a sharp follow-on selloff.

It has reached the crucial support zone close to $20. Bulls were trying to hold to prevent any major breakdown ahead. The sharp decline happened when most of the crypto altcoins experienced a panic.

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Despite the recent improving fundamentals, AVAX price has faced brutal downward pressure and dropped below the significant moving averages.

After reaching the higher trajectory of $65, Avalanche bears stayed on the front and continued to push the token from the cliff. It continued to form the lower low swings from the highs and indulged in a significant correction.

Traded under the bearish influence, AVAX bulls tried to cross the 100-day EMA barrier. However, they failed and demonstrated multiple rejections in the past.

How is Avalanche (AVAX) Performing Right Now?

At press time, the Avalanche was trading at $22.60 with an intraday drop of 5.36%, reflecting bearish swings on the chart.

Its trading volume dropped over 15.26% to $205.40 Million. This signified lower optimism among traders and investors.

The pair of AVAX/BTC is at 0.000372 BTC, and the market cap is $8.92 Billion. Analysts are bearish and suggest that the AVAX price may retest the $20 mark and indicate a potential downmove ahead.

Avalanche Price Action and On-Chain Analysis

The daily chart setup of Avalanche saw a sharp rejection from the $32 mark. AVAX took a down move from there. Moreover, it was trading near the 52-week low region and exhibited underperformance for the past few weeks.

AVAX Price Chart | Source: Santiment

The RSI curve looked oversold and saw a negative divergence, implying the chart’s bearish momentum. However, an RSI reading of 32 means a bounce back is due and can be seen ahead.

@Bowtiedcheetah, in his tweet, said that AVAX is inched closer to $20 and anticipates a bounce. This is the last attempt to save.

$AVAX Day chart. if we don't bounce soon, its might be over pic.twitter.com/Xd4MlMotpV

A Tweet by @Bowtiedcheetah | Source: X

As per the Data from IntoTheBlock, 42.89% of AVAX addresses were making profits at the current price levels. Meanwhile, over 55% of holders still face unrealized losses.

An equilibrium holding data means buyers are still trying to absorb the selling pressure and looking for support. Generally, this situation leads to a price consolidation consisting of slight profit booking.

Total Liquidation Data Overview

This week, the long vs. short liquidations noted a sharp increase as the long liquidations continued to increase. It noted at $1.17 Million, whereas the short liquidations were only at $41.10k.

This means that buyers are facing losses and are in a panic situation, whereas sellers have looked confident.

The current key support levels for Avalanche are around $20. A break below the $20 mark would pull AVAX even lower to $18 and $15 in the short term.

Conversely, the resistance levels were placed around $27. A daily close above it would shift the pullback toward the $32 mark ahead.

AVAX trades with a bearish bias, meaning that any bounce is a selling opportunity. This has happened in the past, and AVAX failed to settle around the 20-day EMA amid multiple attempts.

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.

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