AVAX, the native token of Avalanche blockchain network, has now lost almost 90% of its November 21, 2021 all-time high price of $144.96.
- AVAX was severely affected by buying pressure over the last two months
- The altcoin declined by almost half over the last 60 days
- Resistance range targeted by AVAX is between $18.3 and $18.5
According to tracking from Coingecko, at press time, the cryptocurrency is trading at $15.07 and is seeing red in every zone of its price monitoring chart.
In its intraday performance, the altcoin is down by 1.3% and has declined by 3.9% over the last seven days. AVAX has also decreased by 11.7% for the past 14 days and nearly half in the last two months.
While there appears to be a breakout rally for the digital coin, there’s also the possibility that its price will once again plummet.
It will all depend on how well the digital asset will handle a crucial resistance point that will determine whether it will go up or down over the next few days.
AVAX Tries To Recuperate From Fall
In just two months, Avalanche’s native token experienced a steep fall, declining by 49% as the asset was pummeled by excessive buying pressure.
Source: TradingView
AVAX showed extreme volatility for the past two days that resulted into the formation of a falling wedge pattern on its trading chart.
Given that, the crypto must close above the trendline in order for buyers to be able to test a narrow resistance range between $18.3 and $18.5. If that happens, the 20 EMA will confirm a bullish movement for AVAX.
Meanwhile, the Relative Strength Index (RSI) of the crypto was able to reverse its position from being oversold which should help in pushing prices to higher levels.
However, if the opposite happens, sellers will benefit from the collapse and will be successful in putting the digital coin in the significantly lowered support of $12.6.
A Further Decline On The Horizon For AVAX?
Over the next five days, according to prediction made by Coincodex, AVAX will push its price to $15.30. This level of gain, however, is nothing compared to the price dump that likely awaits the asset.
AVAX will have to put its faith in the ability of bulls to conquer the ongoing trend of its price movement in order to mount a comeback from this looming steep decline.
The mission, however, is daunting, as they are expected to push beyond the $29 marker in order to put the altcoin at $50 which, sadly, is still almost three times lower than its all-time high.
AVAX market cap at $4.4 billion on the daily chart | Featured image from The Daily Hodl, Chart: TradingView.com
Disclaimer: The analysis represents the author’s personal views and should not be construed as investment advice.