AVAX Downtrend: impact of $36.9 support level
In a recent downturn, Avalanche [AVAX] has witnessed a decline in its market performance. Amidst a slight pullback across the entire crypto space, with Bitcoin and Ethereum shedding a bit of their recent earnings, AVAX has shown little to no momentum.
The market showed an equilibrium between buyers and sellers, with no definitive lead taken by either side. Nonetheless, it seems that the sellers might gradually gain ground given the ongoing trading dynamics.
Delving into the present trading scenario of the AVAX/USDt pair, it's notable that Avalanche is trading within a specific bandwidth defined by the interplay between its 50-day moving average (MA50) and 200-day moving average (MA200).
The MA50, stationed roughly at $36.97, serves as an immediate barrier, while the MA200, slightly lower at $36.81, provides a modicum of support. The proximity of these moving averages indicates a consolidation phase marked by restricted trading activity.
The current position of the Relative Strength Index (RSI) at 49.63 suggests a market neutrality, pointing towards the absence of pronounced market directionality.
To overcome its current lethargy, AVAX needs to secure a close beyond the MA50 hurdle. Failing to surpass this threshold could lead to a reevaluation of lower support levels, potentially near the $36.50 mark.
Should the market's bearish sentiment amplify, particularly as broader market corrections take hold, AVAX might explore deeper supports.
A retreat below $36.50 could open the door to further support zones, around $36.00, a critical juncture to halt further slides towards the $35.50 boundary or lower.
Concurrently, AVAX's social media footprint has seen a notable decrease, mirroring its challenge in maintaining elevated price points or sparking significant trading interest.
This downturn in social activity could hint at a breather period, potentially setting the stage for the bulls to regroup and charge past immediate resistance barriers.
This pattern is similarly observed in the open interest metrics across several trading platforms.
The public opinion towards AVAX portrays a market grappling with uncertainty, showcased by apprehensive sentiments towards its volume and market position. Overall, AVAX's trajectory seems undetermined for the time being, with the crypto needing more robust stimuli for a bullish revival.
