Avalanche Price Forecast: Can AVAX Hit $50 in the Week Ahead?

Insights:

Avalanche (AVAX), the layer one blockchain platform for decentralized applications and bespoke blockchain networks, has seen its altcoin price drop by 10.4% in the past week, indicating a bearish trend.

AVAX price decline can be attributed to downturn in market demand, what is depicted by the noticeable drop-off in its trading volume.

What’s the Next Move for AVAX?

Over the past week, the price of Avalanche has fluctuated between $40 and $33, suggesting a downward movement with a decline exceeding 3%. Throughout most of this period, Avalanche has struggled to maintain the $40 mark, facing increasing sell-offs.

Additionally, this cryptocurrency has dropped by over 36% in the past month, reflecting a strong bearish sentiment. Similarly, the broader crypto market has experienced minor setbacks, with Bitcoin trading under $64,000 and Ethereum just below $3,200, signaling overall market instability.

If the bulls manage to push the price past the $35 resistance level, AVAX might see a significant rebound in its momentum. This surge could potentially drive the cryptocurrency to challenge the major resistance level at $50.

However, if market conditions remain weak, the value of AVAX could decline, potentially reaching its support level at approximately $33. If the bearish trends persist, there’s a risk it could further slip to lower support around $30 soon.

The daily technical indicators for AVAX show continued volatility in the market.  The Moving Average Convergence Divergence (MACD) is exhibiting bearish momentum below the signal line.

The Bollinger Bands display a moderate gap, with the 20-day Simple Moving Average (SMA) sitting at $38.35. The upper Bollinger Band is currently at $48.10, suggesting a potential resistance level for any upward movement. Conversely, the lower band indicates support at $28.60, a level that might see buying interest if the price dip to these regions.

The Awesome Oscillator, currently transitioning from green to red bars, indicates a shift from bullish to bearish momentum. Meanwhile, the Relative Strength Index (RSI) stands at 36, reflecting mixed investor sentiment and hinting at a potential bearish trend.