Avalanche (AVAX) shows negative trends in the market, with increasing seller pressure and potential local declines. Analysis indicates the asset may face significant corrections.
Current AVAX Price and Movements
As of today, the price of AVAX is $23.56, down 8.6% from last week and 1.6% from a month ago. Analyst Ali Martinez points out that bulls have exhausted their strength, and the asset could continue its decline.
Technical Analysis and Potential Targets
Ali Martinez noted the formation of a parallel channel on AVAX's weekly chart. This, along with a double-top pattern, indicates continued selling pressure. If the price fails to surpass the upper resistance boundaries, a test at the $16 level is likely, which has served as a support zone in the past.
Future of AVAX in Context of Grayscale ETF
Currently, the $21 level is a crucial support area for AVAX. If the price falls below this level, the asset may look towards the significant barrier at $16. However, an interesting driver is the recent request from Grayscale to convert its Avalanche Trust product into an ETF, which could be a positive factor for the market.
The situation with Avalanche remains tense, and further market movements will depend on the assets' ability to hold at tested support levels. The ETF adoption may also influence investor sentiment.
