Avalanche Price Stabilizes at $34 After Weekend Crash — Can AVAX Recover?
AVAX token fell by over 50% from its March peak. Is the downtrend over?
Key Takeaways
- Avalanche’s price has stabilized above $34 after falling more than 55%.
- However, the majority of AVAX’s holders are still in profit despite the downturn.
- Avalanche could make a recovery, with analysis suggesting it could get to $45.
The price of Avalanche has declined since its peak of $65, which AVAX reached on March 18. The price fell to a low of $30 on April 13, marking an overall decrease of 55%. The next day, April 14, a recovery took place, bringing AVAX to $38 at its high and proceeded to trade sideways above $34.
Considering the amount and the longevity of the decrease, is AVAX ready to make an upturn, or will it continue falling?
Avalanche Fundamentals
Even though the price lost half its value in a little below a month, most AVAX investors are in profit , although just shy of this threshold, sitting at 57.68%. This means that the majority of Avalanche investors still bought AVAX at a lower price than its current price, with the next cluster being around $20.
While only 6.10% are at the money around the current price, this cohort is likely offering the price its support.
When it comes to the market sentiment , it is slightly more bearish. Out of the addresses that bought or sold, more than 1% of the volume traded in the last 24 hours, there are 14 addresses more that sold. However, this isn’t as significant of a difference, and we can conclude that the sentiment is neutral and justifies the sideways range AVAX is trading in.
Transaction data shows no significant changes and is market by low activity. This goes for large transactions and transactions in general.
This applies to the period of larger price drops, suggesting that the selling pressure didn’t come from larger token holders’ dumping. Instead, selling pressure came from the derivatives side through long liquidations.
In the period from April 11, shortly after the initial decline in AVAX price started, we saw a notable rise in long liquidations. Namely, on April 11 and April 12, a total of $10.8 million was liquidated, while short, accounting for around half a million dollars.
This activity has been calmer since last Friday, but there are still slightly more long liquidations than short ones over the weekend.
Avalanche (AVAX) Price Analysis
The price of AVAX ended its higher degree five-wave impulse on March 18, which is why we saw the start of a downturn. It found support at the 0.618 Fibonacci retracement, which usually comes as a stopping point for corrective stages, but it fell in a five-wave manner, suggesting that this might be only the first sub-wave of a larger downfall.
However, recovery should be expected from the current levels, at least as the wave B from the ABC correction, if not the start of an entirely new uptrend. As the wave structure and the four-hour chart RSI suggest, we likely saw a local low on April 13. The previous times RSI was at these level below 30%, AVAX made an upturn
Our next target to the upside would be at the $45 range, where the 0.382 Fibonacci retracement level is. Should we see its surpassing AVAX could climb to $50.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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