The cryptocurrency market is experiencing high volatility due to increased selling pressure and low demand. Major cryptocurrencies like Avalanche, Ethereum, Bitcoin, and Dogecoin are predominantly trending downward, influenced by technical indicators and macroeconomic factors.
Avalanche (AVAX) Price Dynamics
Avalanche has lost 28.70% of its value over the last month, dropping below the $30 mark. Currently trading at $25, AVAX hasn't been at this level since November 6, 2024. Technical indicators suggest that the decline is not yet complete. It's worth noting that the daily chart shows the loss of the demand region at $27, which previously supported AVAX's rise to $50. The Money Flow Index also indicates weak buying interest, remaining below 50, suggesting low capital flow and a decreased likelihood of recovery.
Situation with Ethereum (ETH), Bitcoin (BTC), and Dogecoin (DOGE)
Ethereum is struggling to maintain the $2,600 level. At the beginning of the year, ETH traded above $3,000, but since February a steady decline has been observed. Technical indicators reveal that $2,500 is a critical support level, and if lost, a drop to $2,000 may occur. However, if ETH surpasses the $2,700 mark again, a positive market sentiment could emerge.
Macroeconomic Factors and their Influence
Bitcoin is under selling pressure following Fed Chair Jerome Powell’s withdrawal of interest rate cut expectations. BTC is trading around $95,000, with a risk of declining to $90,000. Keeping the price above $96,000 may prevent larger losses in the short term. Dogecoin has shown volatility recently. After dropping to $0.203 last week, DOGE found equilibrium at $0.254, with minor gains and losses throughout the week. Technical indicators suggest that short-term recoveries for DOGE may be limited, yet the $0.269 level should be monitored as a critical resistance point.
The cryptocurrency market is experiencing high volatility, influenced by various technical and macroeconomic factors. Investors need to closely monitor market changes and consider critical support and resistance levels for major cryptocurrencies.
