Avalanche (AVAX) Price Prediction: AVAX Price May Sink to $7 as the Market Enters a Pullback

As the larger market saw a pullback amid bearish blues, most of the altcoins bled. Avalanche price experienced a price rally in March when it exceeded a 50% increase.

As the broader cryptocurrency market continues to experience a pullback amid bearish sentiment, most altcoins have seen their prices decline.

Avalanche price saw a strong rally in March, exceeding a 50% increase. However, current market trends indicate a decline, raising concerns about whether AVAX price can sustain its current downward trend.

Technical indicators are showing signs of a bearish market, which worries investors as it could push AVAX price toward $7 or even lower levels. A deeper look into its price action can provide insights into what to expect from Avalanche in the short term.

Avalanche Price Rally And The Breakdown

It's worth noting that Avalanche price experienced sustained price gains between March 11 and March 26. During this period, its market value surged from $15.27 to $23.46.

Traders have interpreted this price rise optimistically because it recovered the $20 support area. The $20 level had been a critical zone for AVAX since 2022, offering both support and resistance throughout its price action.

However, in the last week, the price showed a sudden reversal from its upward momentum. The price dropped below $20 to indicate a breakdown in its bullish trajectory.

As a result, market sentiment turned bearish after AVAX price broke through its $20 support point, threatening the potential gains from March's bullish momentum.

As the price continues to fall, attention shifts toward the possibility of further declines, with some analysts predicting that the downward trend may push the price to new lows.

Key Support Levels And The Risk Of New Lows

Avalanche price's downward trajectory has created critical support points for investors to watch. Analysts and traders are focusing on the $9.50 and $7 price levels. These levels will be crucial in determining whether AVAX prices will sustain their downward movement or approach stable support zones.

According to analyst Ali Martinez, Avalanche price is currently breaking through a descending channel to potentially reach levels near $7. The price is testing lower support levels, and the trend seems to be heading toward a critical area, with $7 being a target.

In the analysis, Avalanche (AVAX) price sustained tight price movement from late March until it finally broke the support.

The current market bearish trend indicates that AVAX might continue its downward trajectory throughout the near future. A failure of the price to maintain support at $16.50 could initiate a movement toward $7.

Moreover, the daily chart supports a bearish outlook for AVAX, with the price showing a corrective A-B-C pattern that has been ongoing since March 2024.

According to the wave count, AVAX is currently in the final phase, wave C, which suggests more downward movement is likely. Based on the sub-wave analysis, it may reach a new low below the $16 level to develop wave five.

Bearish Technical Indicators Signal Continued Decline

Analyzing weekly and daily technical trends, there are bearish outlooks for AVAX price. The weekly chart shows declining Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD). The RSI indicator is below 50, showing bearish market momentum. Likewise, the MACD line has fallen below the signal line, indicating a highly bearish trend in the market.

Therefore, analyzing the above technical indicators, AVAX price may not bounce back quickly after the breakdown. This downtrend might be escalating to bearish territory, where the price could drop even further, triggering a shift in investors' sentiment.

At the time of writing, Avalanche price is trading at $19.30, reflecting a 0.96% decline over the past 24 hours. The price experienced fluctuations, reaching a high of $19.68 before retracing, with support potentially near $19.00.