Avalanche (AVAX) has been experiencing a significant downturn in recent times, but technical analysis suggests that it may be approaching a critical inflection point. With the cryptocurrency trading at $8.30, analysts believe that it is testing significant support levels and may be forming a bottom.
The Relative Strength Index (RSI) reading of 31.98 places Avalanche in neutral territory, though closer to oversold conditions, which historically has provided buying opportunities for the cryptocurrency. The Moving Average Convergence Divergence (MACD) histogram at -0.0000 shows bearish momentum is flattening, potentially signaling an imminent trend reversal.
Key moving averages paint a clear picture of the current downtrend, with AVAX trading well below its 7-day Simple Moving Average (SMA) and 20-day SMA. The 50-day SMA at $11.06 represents the first major technical target for any sustained recovery.