Avalanche (AVAX) Breaches $30 Support, Signaling a Potential Bearish Momentum

Avalanche [AVAX] has recently witnessed  a significant breach below a key support level at $30. AVAX has broken below $30 support level, which has acted as a critical floor since early May. This breakdown could open a new bearish momentum as investors may see this as a sign of weakness.

Avalanche (AVAX) price analysis: AVAX breaches key support at $30

After a brief period of consolidation above $30, AVAX price finally succumbed to the selling pressure and breached a key support level. This breakdown could open a new bearish momentum as investors may see this as a sign of weakness.

Key support breached

AVAX was earlier rejected at the 50-day Exponential moving average (EMA) resistance at $35. This resistance proved to be too strong for AVAX to overcome, and the selling pressure quickly pushed the price below the critical support at $30.

This breakdown was further reinforced by the descending trendline resistance, which has been in place since April. The price has now settled at around $28, with the next immediate support level being $27.

However, given the strength of the bearish momentum, a further price decline cannot be ruled out.

On the other hand, if AVAX manages to find support at the current levels and begins to recover, it could face resistance at $30, followed by the 50-day EMA at $35.

AVAX metrics showcase a mixed picture

An analysis of Santiment’s data on whale and development activities reveals a contrasting tale.

Development activity, as indicated by the chart, has seen fluctuations but has remained relatively stable. This suggests that the team is still actively engaged in the project.

On the other hand, the percentage of the stablecoin held by whales, as shown by the lower chart, has declined. This could indicate a possible reduction in whale interest or a shift in their investment strategies.

AVAX liquidation insights

Turning to the liquidation data from coinglass, we can observe several spikes in liquidations, which correlate with the sharp price movements and indicate increased volatility.

The recent increase in short liquidations suggests that traders are betting on further price declines.

Meanwhile, an analysis of coinglass long/short ratio data highlights an increasing number of investors taking short positions on AVAX.

This suggests that investors are staking on further price declines.

News source：https://www.kdj.com/cryptocurrencies-news/articles/avalanche-avax-breaches-support-signaling-potential-bearish-momentum.html

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