Since August 8, when the Avalanche price hit and traded above $30, its value has dropped by more than 50 per cent. Today, with prices dropping by over 2 per cent, the long-term bearish trend looks poised to continue.
Over the past few months, the Avalanche platform has faced many challenges, including accusations of engaging in anti-competition behaviour. As reported by Forbes last month, Ava Labs, the company behind the Avalanche platform, was accused of hiring a law firm to go after their competitors. According to the reports, the law firm was tasked with finding “dirt” on firms that Ava Labs considered their main competitors and using the legal system to derail their rise.
When the revelations were published, the value of Avalanche took a nosedive, and the crypto has not recovered since then. The impact saw Avalanche’s price closing down by 10 per cent in September. In October, the price is already down by 14 per cent and looking likely to continue throughout the month.
Avalanche has also been impacted by the current bear market of the cryptocurrency market. Being significantly correlated with the industry, its price has dragged down every time the cryptocurrency industry has suffered a market shock.
Avalanche Price Prediction
As indicated above, the Avalanche has struggled in the past three months, dropping by more than 50 per cent. In the chart below, we can see the Williams Alligator indicator giving strong signals that the current trend is still aggressively bearish. The chart also shows the Avalanche price approaching the $13.7 support level with high volatility and momentum.
Therefore, I expect the current bearish trend to continue for the next few trading sessions. I expect the price to hit the $13.7 support level and possibly trade below it. My long-term price analysis expects the Avalanche price to fall below the $12 price level by the end of the month. A trade above the $17 price level will invalidate my bearish trend analysis.
Avalanche Daily Chart
