Avalanche (AVAX) Shows Short-Term Recovery Amid Descending Market Trend

• Avalanche (AVAX) attempts short-term recovery but remains constrained within a larger descending market trend.
• Analysts highlight key support between $9.00 and $8.50 before establishing a long-term price bottom.
• Technical indicators, including RSI and MACD, suggest continued selling pressure and weak bullish momentum.

Avalanche (AVAX) appears to be recovering from a recent short-term low. Analysts indicate that its price remains under the influence of the longer-term descending trend. Support levels below may be important before a long-term bottom is established.

At the time of writing, Avalanche (AVAX) is trading at $11.94, recording a 24-hour trading volume of $517.91 million and a market capitalization of $5.14 billion. The token has slipped 1.92% over the last 24 hours, reflecting continued short-term pressure.

Source: CoinMarketCap

Avalanche Attempts Short-Term Price Bounce

However, in the recent correction, popular crypto analyst GainMuse observed that AVAX is attempting to make a short-term bounce after reversing from the bottom boundary of its larger falling range.

According to his observation, the token’s price is attempting to bounce back after receiving support and could move to higher intraday resistances after breaking above the adjacent downtrending line.

Avalanche Downtrend Persists Despite Recovery

Furthermore, not all indicators are showing an upward signal. Another market analyst, DrBullZeus, noted that AVAX is still working inside a clear downtrend. So far, all attempts to move up inside this chart pattern have been met with selling.

In addition to the warning, DrBullZeus picked up the price gap that was left uncovered during the strong selling pressure outburst of October 10. This region, commonly tested by price, lies below the existing price level and will have to be fulfilled before AVAX develops a more strong long-term foundation. Market analysts recommend keeping a very keen eye on possible price reactions within the value bracket of $9.00 to $8.50.

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AVAX Weekly Trend Under Pressure

The value of the RSI is 33.64, which remains below the average of 41.27, indicating that there is weak momentum and sustained selling pressure. The price of AVAX remains significantly below the value of the Moving Average Ribbon, which means the value of SMA 20 is 20.73, SMA 50 is 21.76, SMA 100 remains at 28.17, and SMA 200 is at 26.13 units.

The MACD indicates these weak sentiments, with the MACD line standing at -3.25, lower than the signal line at -2.17. The MACD histogram is also negative at -1.07, indicating that the bear momentum is also ongoing. The MACD again indicates that sellers are dominating the market.

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