Avalanche (AVAX) is currently experiencing a bear market, causing concern among investors. However, some see this as an opportunity to buy the dip.
A technical analysis of AVAX’s price movement shows that it has been in a bearish trend for some time, with recent breaks in its structure confirming this bearish state. Despite a recent bounce, AVAX is still finding resistance at its 200 EMA (Exponential Moving Average).
There are two potential scenarios for AVAX in the short term:
- A bullish scenario where AVAX could reach a range of $960 to $972.
- A bearish scenario where AVAX drops to around $893 to $904.
Traders are advised to wait for confirmation of the direction before making any moves, with the choice of going long or short depending on the breakout direction.
The daily time frame shows AVAX is bearish, with the price below both the 200 EMA and the 50 EMA. While the short-term looks bearish, the protocol is seen as having a strong foundation for long-term success.
The weekly chart shows AVAX has lost key support levels, with a potential key support range between $7 and $10.69.
Overall, this analysis suggests that AVAX is currently in a bearish trend in the short term, but the long-term outlook remains positive due to its strong foundation. Traders are advised to be cautious and wait for breakout confirmation before making any moves.