Although the AVAX Price has dropped 40% from the highs, it remains in a long-term bullish channel, but downside risks are high.
Avalanche (AVAX) was one of the best performing cryptocurrencies when the market turned higher from the summer lows. The AVAX token gained over 1,400% from July through August, setting an all-time high of $151.22 on November 22nd. But since then, it’s been ‘down only’ for Avalanche, which has lost around $8 billion in market cap in the last six weeks and is no longer a top 10 crypto.
Avalanche’s recent performance has seen it lose ground to rival Terra (LUNA), that’s trading within 5% of its all-time high this morning. Subsequently, if Terra’s rally continues, it may suck liquidity and buyers from Avalanche, hindering its progress.
Avalanche Price Forecast
The daily chart shows the AVAX price is trending broadly higher in a rising parallel channel. The bottom of the track at $80.00 provides the first significant price support level. Below the trend, the 100-Day Moving Average at $75.16 provides additional cover.
As long as the price remains above the trend and the 100-Day, it should continue to trade with a bullish bias. However, the recent turnaround has failed to lift Avalanche above the psychological $100 threshold. Furthermore, cracks have appeared in Bitcoin’s recovery, which could exert downside pressure on altcoins. For now, the Avalanche price is stable, although doubts will remain until the price convincingly clears $100.
In my opinion, the immediate outlook is unclear, and for that reason, I maintain a neutral view. However, that view flips to bearish below the 100-DMA.
AVAX price Chart (Daily)
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