The price of AVAX is at a critical junction, displaying bearish signals, even as high activity continues on the Avalanche network.
Current Situation with AVAX
After a steep downturn that bottomed in mid-March, the price of AVAX started a reversal, forming a double bottom and maintaining a bullish trend within an ascending channel. However, recently, price action has developed into a descending triangle pattern with testing of key horizontal support.
Factors Influencing Price
Despite rising activity on the Avalanche platform, prices are declining as the number of active addresses has not grown at the same rate as transaction volume. The recent spike in activity is largely attributed to the launch of a new platform, boosting daily transactions to a million.
Future Movement Prospects
The current price of AVAX is at a critical support level between $17.80 and $18.50. A break below this zone could signal a drop toward $15. Currently, the RSI is nearing oversold levels, and the next few candles will be crucial in determining the future dynamics of AVAX.
AVAX faces an important moment, and its future dynamics largely depend on its ability to hold the support level. The situation will be closely monitored in the coming days.
