Presently, the cryptocurrency market is experiencing a bearish period, with coins such as Avalanche (AVAX), Ethereum, Litecoin, XRP, Solana, and others all being affected by this trend. The price of AVAX is currently moving in a strong bearish direction below the 100-day Moving Average (MA) and may continue in this direction for some time before showing any signs of reversal.

Analyzing the technical indicators for Avalanche

Looking at the 4-hour timeframe chart, AVAX has fallen below both the 100-day moving average and the trend line, indicating a downward movement in price. The MACD indicator on the 4-hour timeframe reveals a significant bearish trend as the MACD histograms are below the MACD zero line.

Moreover, both the MACD line and MACD signal line are also trending beneath the zero line, suggesting the price may continue to drop. The Relative Strength Index (RSI) on the 4-hour timeframe further supports a bearish trend as the RSI signal line hovers around the oversold zone, indicating a potential further decline.

Additionally, the alligator indicator, which helps determine an asset's trend, shows that both the alligator’s lip and teeth have crossed over the alligator’s jaw facing downwards. This formation indicates a bearish trend and the price could see a further decrease.

Future possibilities for Avalanche

Taking into account the previous movement of the price, there are two key resistance levels at $50 and $59.99, as well as a support level at $39.95. If prices fall below the support level of $39.95, it could lead to a further decline towards the next low of $27.53.

Conversely, if the price does not break below the previous low, it may initiate an upward correction towards the resistance level of $50.80. Breaking past this level could lead AVAX to move even higher towards the $59.99 resistance level.

At the time of writing, Avalanche was trading at around $38, marking a 1.75% decrease in the last 24 hours. Its market cap has dropped by more than 16%, while its trading volume has surged by almost 250% in the past day.