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AVAX Technical Analysis Suggests Bearish Trend with Potential Further Downside

Avalanche AVAX: Are You BUYING the DIP?
Avalanche AVAX: Are You BUYING the DIP?

Introduction

AVAX, the native token of the Avalanche blockchain, has hit a new bear market low of $8.88 on September 25, 2023. This article will provide a technical analysis of AVAX, including hourly, daily, and weekly charts, to offer insights into potential price movements in the near future.

Hourly Chart

The hourly chart for AVAX shows that the price is currently in a bearish pattern. The price is below the 200 EMA (Exponential Moving Average), indicating a bearish trend. Both the 50 SMA (Simple Moving Average) and 50 EMA are also below the 200 EMA, confirming the bearish trend.

Daily Chart

The daily chart for AVAX also shows a bearish trend. The price is below the 200 EMA, and both the 50 SMA and 50 EMA are below the 200 EMA. The price is also below the previous support level of $9.02, indicating that further downside is possible.

Weekly Chart

The weekly chart for AVAX shows that the price is in a support zone between $7 and $10.69. This suggests that there is some support at this level, but it is important to note that the overall trend is bearish.

Overall Analysis

The technical analysis of AVAX suggests that the price is in a bearish trend. There is potential for further downside, with resistance around $9.02. However, the weekly chart shows that there is some support at the current level.

Investment Opportunity

Nick sees the current bear market low as an opportunity to accumulate AVAX at lower prices. Nick cites the strong fundamentals of the Avalanche blockchain as a reason to be bullish on AVAX in the long term.

Conclusion

The technical analysis of AVAX suggests a bearish trend in the near future, with the possibility of further downside. However, the weekly chart shows that there is some support at the current level. Investors who are bullish on AVAX in the long term may see this as an opportunity to accumulate AVAX at lower prices.

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