As Avalanche (AVAX) continues its upward trajectory, all eyes are focused on a key resistance level at $15. The cryptocurrency has been gaining momentum, and investors and traders are closely monitoring its price action to see if it can break through this significant barrier.
The $15 resistance level holds immense importance as it has previously acted as a strong price ceiling. A successful breach of this level could open the door for further bullish moves, while a failure to do so may result in a period of consolidation or a potential pullback.
The market sentiment surrounding Avalanche remains optimistic, and traders eagerly await the outcome as they assess the potential for future price movements.
Cryptocurrency Market Faces Decline Amidst Regulatory Concerns and Macroeconomic Uncertainties
The global cryptocurrency market couldn’t maintain its upward rally and experienced a modest drop. Nonetheless, the market cap is currently at $1.12 trillion, showing a more than 2% decrease in the last 24 hours.
Cryptocurrency Price Today: Bitcoin Remains Below $27,000, ETH Regains $1,800 Mark https://t.co/8aFHqJFdEP
Cryptocurrency price on May 22 quick take: The global market cap dipped down to $1.12 trillion. pic.twitter.com/dskh7KReH5
— BlockChain (@VeteranOwned1) May 22, 2023
However, the decline can be attributed to macroeconomic factors, including uncertainties surrounding the US debt ceiling and discussions about global regulation of the cryptocurrency sector. As a result, many cryptocurrencies faced losses early on Wednesday.
Bitcoin (BTC), the dominant player in the crypto space, has once again dropped below the $27,000 mark, severely affecting other top cryptocurrencies, including Avalanche (AVAX) coin, leading to a decline in their prices.
Investors are still worried about regulatory issues affecting cryptocurrency markets and uncertain economic conditions, such as the US debt ceiling deadlock. This is why, crypto markets have been trading without much movement in the past 24 hours.
On the flip side, the crypto fear and greed index remains unchanged at 50 points from yesterday. Bitcoin (BTC) has been trading between $26,500 and $27,500 for almost two weeks as concerns about crypto regulations and limited market liquidity weigh on investors’ minds.
Thus, the market is generally experiencing a decline, and it is expected to remain uncertain throughout the week.
US Dollar Strength Dampens Avalanche (AVAX) Coin’s Upside Potential
Apart from this, the increasing strength of the US dollar also played a role in limiting the gains of the Avalanche (AVAX) coin. The broad-based US dollar remained near a two-month high due to ongoing negotiations regarding raising the US debt ceiling.
Dollar steady as debt ceiling worries weigh; Kiwi slips 1% https://t.co/W5ChtZOMgZ pic.twitter.com/5hQIOhYCU6
— Reuters (@Reuters) May 24, 2023
Despite the potential risks, such as a possible default and recession, investors viewed the situation as a greater concern for the global economy, causing them to favor the dollar over cryptocurrencies like AVAX.
Avalanche (AVAX) Price Prediction
Avalanche (AVAX) has witnessed a setback in its previously bullish rally, resulting in a decline from $16.66 to $14.40. Currently, the price of Avalanche stands at $14.40, accompanied by a 24-hour trading volume of $10 million. Over the past few hours, Avalanche has experienced a decrease of more than 3%.
Notably, Avalanche holds the 17th position in the market, with a live market cap of $4.8 billion.
Big eyes coin (big) aims to enhance its blockchain and ecosystem to compete with established players such as ethereum (eth) and avalanche (avax), and other coins in the market’s top 10 cryptos.
— Naomie Blosser (@NaomieBlosser1) May 24, 2023
Despite the recent drop, Avalanche (AVAX) continues to strive for recovery as it approaches the $15 price level to regain positive momentum. This renewed interest can be attributed to the higher trading volume, indicating increased activity on the network and a growing fascination with the Avalanche ecosystem.
The increasing interest and activity on the Avalanche (AVAX) network are expected to support the coin’s upward trajectory. This surge in interest signifies growing confidence and participation from investors and users within the network. Consequently, there is a possibility that AVAX holds the potential to reach $21 in the long term.
AVAX/USD faces resistance around the $15 level, creating a halftime break scenario. However, the price action displays a series of uncertain and volatile candles. The 15-day exponential moving average is a support level of around $14.20, providing some stability for AVAX.
Currently, AVAX is finding some support around the $14.20 level, but a close below this level could lead to a further decline toward the key support level at $13.85.
On the four-hour timeframe, AVAX has formed a descending channel pattern, adding to the likelihood of continuing the bearish trend. The RSI and other leading indicators are also signaling a bearish sentiment.
Therefore, it may be advisable to consider short positions below the $14.760 level, with targets at $14.20 and $13.0857.
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