Crypto Market Volatility Halts “Uptober” Gains for Avalanche (AVAX)
Despite wrapping up the second week of “Uptober” on a high note, the crypto market has faced a downturn over the last six days, primarily driven by escalating geopolitical tensions. As a result, leading cryptocurrencies have experienced significant pullbacks, impacting their overall market valuations.
For Avalanche (AVAX), despite forming an ascending channel pattern on the 1D time frame, the altcoin has consistently yielded negative returns for investors. This brings up an important question: Is Avalanche’s bull run over, or could this declining asset make a powerful comeback this altcoin season?
AVAX Price Retests Key Support Amid Market Volatility
The Avalanche token has struggled amid recent market volatility, showing persistent negative price movement. Over the past day, AVAX fell by 3.24% and recorded an 8.74% drop over the past week. In a broader view, AVAX has decreased by approximately 11% in the past month and has a Year-to-Date (YTD) return of -34.16%.
- RSI Downtrend: The Relative Strength Index (RSI) reveals a significant downward trend, indicating a growing selling pressure versus buying in the AVAX market.
- SMA Resistance: The Simple Moving Average (SMA) indicator continues to act as a resistance on the 1D AVAX price chart, suggesting a bearish outlook for the coming week.
Can Avalanche (AVAX) Reach New Highs in 2024?
For AVAX holders and traders, there’s a possibility of a bullish reversal, but the outlook largely depends on market conditions. If bullish momentum strengthens, AVAX could retest its resistance level at $31.50 within the month. Should positive market sentiment continue, the price may approach its upper resistance of $39.30 in the near future.
Potential Scenarios for AVAX Price Movement
- Bullish Case: A trend reversal could propel AVAX to the $31.50 resistance and potentially higher to $39.30, assuming favorable conditions for the bulls.
- Bearish Case: If market uncertainty escalates, AVAX may retest its support at $24.30. A further bearish trend could push the token down to a critical low of $17.30.
With ongoing volatility, AVAX traders should keep a close watch on market indicators to gauge potential movements, especially considering the unpredictable dynamics of the broader crypto landscape this quarter.