Avalanche is currently testing an important level. According to Ali Martinez, for $AVAX at present, the crucial resistance level to breach is at $40, while the most significant support level stands at $34.50.
The prediction comes as $AVAX has been trading in a volatile phase, being down $34.23, down 0.93% as compared to the same time last day.
Why is $AVAX Down?
The current price decline of Avalanche (AVAX) is probably caused by a number of factors, such as the general bearish sentiment of the market, technical indicators that are trending downward, possible profit-taking from recent price gains, and increased competition from other blockchain platforms.
Analysts are pointing to the falling Relative Strength Index (RSI) on charts as an indication of waning bullish momentum and the possibility of further price decline.
Avalanche’s market capitalization has decreased as a result of changes in investor sentiment and larger cryptocurrency market downturns. Lower decentralized finance (DeFi) activity, heightened competition from other blockchain platforms like Ethereum and Solana, and overall market volatility are some of the reasons for the decline.
Even though these difficulties have reduced its value, Avalanche is still concentrating on its advantages, such as its great scalability, cheap transaction costs, and quick processing times.
In an effort to restore market trust and sustain long-term growth, the platform’s team is constantly striving to broaden its ecosystem, draw in new initiatives, and improve user adoption.
Also Read: Blockchain Firm Avalanche Foundation Secures $250 Million in Private Token Sale
Avalanche Launches Avalanche9000 upgrade
The much-anticipated Avalanche9000 upgrade was released on the mainnet by the Avalanche network, parallel to increasing the scalability of the network.
Significant network enhancements, such as lower expenses for implementing subnet blockchains and managing smart contracts, are anticipated as a result of this important development.
The Avalanche ecosystem has been eagerly awaiting the Avalanche9000 upgrade.
With the successful deployment of this significant update on its mainnet, the network—which has established itself as an Ethereum rival—has ushered in a new era of improved capabilities and cost reductions for both users and developers.
$AVAX Market Indicators: What to Expect?
According to market technical indicators, the Fear & Greed Index for $AVAX is currently at 68 (Greed), and the emotion is currently bearish.
Over the previous 30 days, Avalanche saw 16 out of 30 (53%) green days and 7.36% price volatility. With nine technical analysis indicators indicating optimistic signs and nineteen indicating bearish indications, the overall sentiment for Avalanche price prediction is bearish.
Avalanche’s 200-day SMA is expected to increase over the course of the upcoming month, reaching $35.87 by March 3, 2025.
To determine if a cryptocurrency is overbought (above 70) or oversold (below 30), one common indicator is the Relative Strength Index (RSI) momentum oscillator. The RSI number is 44.65 at the moment, indicating that the AVAX market is in a neutral state.
Also Read: Cardano, Avalanche Lead Layer 1 Surge With 27% Gains, ATOM Follows At 20%