Key Insights:
- AVAX faced a sharp decline following the tariff announcement and is now testing the lower boundary of a descending channel pattern.
- If this bearish momentum continues, AVAX could drop to the $14.00 level in the coming days.
- Traders are over-leveraged at $17.42 on the lower side (Support) and $18.80 (Resistance) on the upper side.
Amid the ongoing bearish market sentiment, Avalanche (AVAX) price prediction remains a key topic of discussion following the recent price crash. The overall crypto market plummeted significantly after Donald Trump announced reciprocal tariffs in the United States.
Current Price Momentum
During the crash, the AVAX price plummeted over 12%, reaching a key level. However, the price is now showing signs of recovery, surging nearly 0.75% over the past 24 hours. At press time, AVAX was trading near $18.55.
Due to the bearish market sentiment, its trading volume dropped by 40%. The decline in trading volume indicates lower participation from traders and reduced investor interest following the recent price crash.
Avalanche (AVAX) Price Action
According to expert technical analysis, AVAX has been moving in a descending channel pattern on the weekly time frame and an ascending channel pattern on the daily time frame.
However, with the recent price drop, AVAX is on the verge of breaching the lower boundary of the ascending channel and heading toward the lower boundary of the descending channel. The price difference between these lower boundaries is approximately 10%.
AVAX Price Prediction: Will Price Continue to Fall?
Based on recent market sentiment and historical patterns, if this bearish momentum continues and the price keeps declining, AVAX could face a massive sell-off and a significant price drop.
According to the daily chart, the AVAX price prediction for the upcoming days remains bearish if it closes below $17.50. If this happens, the price could decline by 10%, reaching the next support at $16.20. However, if a price reversal occurs, AVAX could potentially rise to the $26.90 level in the future.
Meanwhile, if the bearish momentum persists and the asset fails to hold the $16.20 level, the AVAX price prediction could turn even more bearish, potentially dropping another 14% to its next horizontal support at the $14 mark.
On both higher time frames, AVAX is trading below the 200-day Exponential Moving Average (EMA) on the daily chart, indicating a strong bearish trend.
$1.33 Million Worth of AVAX Inflow, Sell-off Signal?
In addition to the bearish price action and technical analysis, on-chain metrics further support AVAX’s negative outlook. Data from the on-chain analytics firm Coinglass reveals that investors and long-term holders have been dumping their holdings.
Additionally, spot inflow/outflow data shows that exchanges have witnessed an inflow of approximately $1.3 million worth of AVAX tokens over the past 24 hours.
This notable inflow into exchanges indicates potential dumping, which could increase selling pressure and drive further downside momentum.
Major Liquidation Levels
Meanwhile, the major liquidation levels are $17.42 on the lower side and $18.80 on the upper side, with traders being over-leveraged at these levels, as reported by the on-chain analytics firm Coinglass.
Data further reveals that if market sentiment remains unchanged and the price falls to $17.42, nearly $4.90 million worth of long positions will be liquidated. Conversely, if sentiment shifts and the price rises to $18.80, nearly $4.90 million worth of short positions will be liquidated.