Avalanche's AVAX Token Plunges 20% in Bearish Market
1min read Avalanche's avax token experienced a significant 20% price drop, with technical indicators confirming a bearish momentum. The price decline was marked by a breakout at $22.86, leading to a sharp downtrend.
The AVAX price chart on Binance, analyzed in the 5-minute timeframe, displayed a structured price movement with a strong downward trend followed by a consolidation phase. Initially, AVAX reached a peak price of approximately $24.50 before reversing into a sharp downtrend. The price decline started around 14:30 UTC where it tested the resistance level near $24.50 and failed to sustain upward momentum. This failure marked the beginning of a steady decline, which led the price to establish consecutive lower highs and lower lows.
The support levels fell one after another, and this trend became observable when Avalanche price dropped through it. At 18:00 UTC, the price reached $22.00 to examine an essential support zone. AVAX failed to hold onto its previous support level when selling pressure increased, so it broke through and fell further. Periodically, throughout UTC time 19:00, the price reached the critical support point at $21.50, yet bearish forces prevented the price from rising. The price formed a resistance at $21.50 but failed multiple recovery attempts that sent prices even lower.
The AVAX price trend reached its daily minimum at $20.00 during UTC time 21:00 while it corresponded precisely with the previously analyzed support area. The trading level tried to protest before another price decline occurred which forced the rate toward its daily low of $19.50 UTC between 03:00. Market stabilization occurred after crossing this production minimum when investors started buying at this specific support point.
During the downtrend phase, the Relative Strength Index (RSI) indicator effectively detected points when the market became oversold. The Relative Strength Index indicator maintained levels between 50-55 points when the AVAX price trend surpassed $22.00, which indicated market neutrality. RSI registered a dramatic decrease after the price drop, reaching 18:00 UTC when it fell beneath 30, which pointed to oversold conditions because the value approached $21.50. The price reached $20.0 