Avalanche prices have continuously struggled in the markets for the past few weeks. In today’s trading session, the prices are down by 7 per cent, wiping gains made during yesterday’s trading session. The drop in price is a continuation of the long-term bearish market that has seen Avalanche losing 9 per cent in June.
Since the year started, Avalanche’s price is also down by 78 per cent. Despite being in a strong cryptocurrency bear market, Avalanche’s price drop has been significant. Compared to other cryptocurrencies, Avalanche has also been among the top losers in the market since the year started. Avalanche price has also dropped by 83 per cent since November 21, 2021, when it sets its all-time price high.
Avalanche price Prediction
For the past three weeks, Avalanche has traded within very narrow support and resistance levels of $22 and $27. The cryptocurrency has alternated between the bear and bulls market in the past seven days in each trading session. Therefore, the prices have struggled to establish a trend.
Looking at the daily chart below, it is also evident that the recent downward momentum has reduced. This has created the current sideways market, where prices have failed to break the support and resistance levels.
Today’s price drop wiped in the next few trading sessions, with prices trading above today’s opening price of $25. However, there is also a high likelihood that, even after wiping out today’s losses, the prices will likely return to trade below the $24 price level in the coming trading sessions. This is because of the current long-term sideways market.
However, if the prices break out of the current support and resistance levels of $22 and $27, then my sideways market analysis will be invalidated. If it breaks the resistance level, a new bullish trend will be established. On the other hand, breaking below the support level will mark a continuation of the long-term bearish move.