AVAX Crypto Plummets, Hovers Near Crucial Support After Steep Decline

AVAX cryptocurrency experienced a 10.05% decline during the weekly trading period, settling above the $31.78 support level. Trading volume surged 1.06% to $563 million. Despite its ranking among the top 15 cryptocurrencies by market cap, AVAX faces bearish pressure in the technical analysis, with key exponential moving averages acting as resistance. The RSI indicates weak momentum, suggesting a neutral perspective.

Avalanche (AVAX) Crypto Suffers Steep Decline, Hovers Above Key Demand Zone

Market Summary

The Avalanche (AVAX) cryptocurrency experienced a significant decline of 10.05% during the weekly trading session, sending its price plummeting below key exponential moving averages. The current price of AVAX stands at $31.78, hovering marginally above a crucial support level. Trading volume has surged by 1.06% in the past 24 hours, reaching $563 million.

Project Overview

Avalanche is a layer-1 blockchain protocol that aims to rival Ethereum by facilitating faster and more scalable transactions. It functions as a platform for customized blockchain protocols and decentralized applications (dApps). The blockchain boasts a high transaction output of up to 6,500 transactions per second (TPS), without compromising on scalability. AVAX is the native token utilized within the Avalanche ecosystem and operates on its own unique Avalanche consensus mechanism.

Supply Distribution and Market Dominance

Avalanche's maximum token supply is capped at 715 million, with approximately 438.19 million tokens currently in circulation. This represents around 53.02% of the total supply. The current market capitalization of AVAX stands at $12.46 billion, placing it among the top 15 most dominant cryptocurrencies by market capitalization.

Circulating Supply and Token Distribution

The allocation of AVAX tokens has been widely distributed, with 50% earmarked for staking rewards, 10% reserved for the team, and 20.67% allocated to public sale Option B. Additionally, 18.30% of tokens were assigned to public sale Option A, 9.26% to the foundation, 7% to the community and developer endowment, 5% to strategic partners, 3.5% to private sale, 2.5% to seed sale, 2.5% to airdrop, and 0.27% to the testnet incentive program.

Technical Analysis

The technical indicators for AVAX present a bearish sentiment. The price has slipped below key exponential moving averages, with the 50-day EMA acting as a potential resistance point. After breaking through the $50.41 major resistance level, AVAX encountered strong resistance at the $65.53 level, leading to a decline of over 50% to the $31.78 demand zone. The current price is hovering above this crucial support level.

If the price manages to break above $40.04, it may indicate a potential rally towards $50.41. Conversely, if AVAX closes below $27.38, it could trigger further bearish sentiment. The relative strength index (RSI) indicates a weak momentum in the current trading sessions, with the RSI and SMA lines sloping near each other, reflecting a neutral perspective.

Recent Market Performance and Outlook

Avalanche has exhibited bearish sentiments since March 19, 2024, experiencing a negative profitability of over 35% during the monthly trading session. Despite the recent decline, the AVAX price remains above the $31.78 demand zone.

Based on the technical analysis, a breakout above $40.04 could signal a potential bullish trend, while a close below $27.38 could indicate a further bearish outlook.

Disclaimer

The information provided in this article is solely for educational and informational purposes and should not be construed as financial advice. Investing in or trading cryptocurrencies or stocks involves financial risk and potential for loss. It is crucial to conduct thorough research and consult with qualified financial professionals before making any investment decisions.