Is AVAX under siege? This week the global crypto market cap surpassed the $1 trillion mark as several cryptocurrencies began to trend to the upside.
While some cryptocurrencies appear stable and capable of maintaining their bullish momentum, others appear to have highly unsustainable bullish price action and are under serious bearish threat.
One of these cryptocurrencies is Avalanche.
According to data from CoinMarketCap, Avalanche currently trades at a $17.16 price and is up by 1.07% over the last day. This isn't so bad, considering how like other cryptocurrencies in the market, Avalanche is up by 12.75% over the last 7 days.
However, Avalanche appears to be under some bearish pressure recently and is now consolidating around the $17.5 – $17 zone.
Like Cardano, Shiba Inu, and Dogecoin, Avalanche is one of the cryptocurrencies most affected by the 2022 crypto winter.
Falling from its $150 high in November 2021, Avalanchenow struggles below the $20 mark and continues to face bearish pressure.
The price action of Avalanche over the year has formed a descending triangle and closely resembles the price formation of most of the other cryptocurrencies on the market.
However, things become more interesting when we zoom in on the 4-hour chart.
Zooming in, Avalanchemay be in for some serious bearishness.
As illustrated by the chart above, the recent bullishness of cryptocurrencies across the market may have been good for AVAX in the short term but now appears to spell impending bearishness for the cryptocurrency.
AVAX now appears to be pushing up against the upper trendline of the ascending channel illustrated in the previous section.
Recall that this trendline has been retested several times over the last year, and has remained unbroken.
As if the bearish signs are not enough, the RSI on AVAX's 4-hour timeframe also appears to be gearing up for a bearish crossover while heading for overbought conditions at a value of 65.
The immediate support for the cryptocurrency appeared to be around the $16.16 zone and was broken through to the upside this week in the general crypto bullish stint.
A retest of the $16.2 zone can be expected before any kind of retest of the upper trendline of the descending channel.
However, it is possible that the price action of AVAX breaks down the $16.2 support and continues to trend lower, as the market indicates. If this happens, the price action of AVAX would form a "false breakout" and may trend lower to the next support zone around $14.73.
Overall, the price action of AVAX appears bearish over the long term and appears to be headed for further losses.
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.