Avalanche ended another bearish week that extended its losses to 47% from the April highs. AVAX touched the $103 peak on April 2, following a massive surge since mid-March. However, the altcoin ended its bearish monthly action in April near $55.05.
Meanwhile, April was a bearish month for many large-cap cryptocurrencies. While writing these lines, Avalanche traded around the $58.55 mark, following a rebound from yesterday’s low of $55.05. However, the 47%% monthly slump places Avalanche beneath its March lows.
Is Avalanche Ready for Reversals or Continued Dips?
The last time Avalanche explored its current value areas was in January this year before recording a remarkable pump. The token’s MFI (Money Flow Indicator affirms the massive bearish strength, but the –DI currently crosses the ADX.
That shows the bearish momentum may be ready to calm down. Meanwhile, the latest drop put the asset within the oversold region, as the Relative Strength Indicator depicts.
You may want to watch these short-term FIB-based price zone whenever the AVAX price highlight bullishness. The 0.236 FIB retracement line matched the $63 price mark, while the 0.382 FIB line corresponds with the price point of $69.10.
AVAX has previously tested the latter as support multiple times. Also, the $73 mark remains vital as far as near-term resistance is concerned. This value area corresponds with the 0.5 FIB retracement level.
More Downside Possibilities?
Avalanche has a substantial probability of extending downward despite the oversold conditions. The price may continue suffering from broad market factors. Moreover, possibilities of uptrends or extended declines rely on overall market sentiment.
Some metrics such as the FTX and Binance Derivatives funding rates noted significant plunges within the past couple of days, showing faded investor confidence. Such market conditions suggest downside price actions for the crypto space.
Nevertheless, FTX and Binance funding rates show sentiment recoveries over the past few hours, matching the brief revival from Saturday lows.
While writing this content, the global crypto market capitalization noted a 2.49% 24-hour gain to $1.75 trillion. Also, Bitcoin gained 2.71% within the past 24 hours to $38,978.
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