AVAX Price At Key $35 Support: Could It Rebound Or Melt To $33?

• The trading volume has increased by 47% to $472.45 million.
• Avalanche price has declined by 37% since December’s high.

Avalanche (AVAX) has been bullish since September and has smashed the psychological level of $50. However, the bullish rally was interrupted near the $52 mark, and the trend was flipped.

From the beginning of December, sellers have dominated and led the trend, which has dropped by 37%. Since mid-November, the AVAX price has been defending the major support level of $35.

The 200-day EMA lies in the same territory, strengthening the support zone. The AVAX crypto has been struggling between the 20-day and 200-day EMA. It drew much attention because of its $395.31 Million daily trading volume and $14.85 Billion market capitalization.

Whale Activity and Holders Sentiment

According to data from IntoTheBlock, 33% of the AVAX coin owners lost money when the token hit $36.19. At the same time, 59% of owners made money at that price.

Most people (58%) intend to retain AVAX for at least a year to demonstrate their faith in the project. Despite brief market declines, the majority of AVAX investors remain actively involved.

Whale behavior has a significant influence on how people trade AVAX. Large investors own up to 70% of the supply since market leaders firmly support Avalanche.

Institutional investors and affluent individuals have demonstrated their continued market presence. They made $2 Billion in large transactions over the last week.

Avalanche’s success in the coming weeks will be determined by whether market participants maintain or break below the $35.15-$35.70 trading support. If buyers push the AVAX price above this level of support, new trading zones between $38 and $42 may exist.

AVAX Price Formed Descending Triangle: What’s Next?

When writing, the AVAX crypto traded at $35.60, which has remained unchanged for the past 24 hours. The market capitalization was around $14.71 Billion, and the 24-hour trading volume was $472.84 million.

Buying momentum can be generated if the AVAX price triggers a breakout from the descending trendline. Buyers might be confident once the price surpasses the crucial level of $44.

After a successful breakout, the token is expected to enter the $50 territory. Conversely, if the price dives below the significant support level of $35, selling pressure can be experienced.

The price below the $35 level could spread fear among buyers and profit-booking momentum and may drop to the $33 mark. Here, most traders and investors prefer to book profit, which may lead to strong selling pressure.

Avalanche Price on the Verge of Breakout

The AVAX crypto was currently at a critical juncture. It hovered around the key support level of $35. With the recent decline of 37% from December’s highs and a significant increase in trading volume, market dynamics are shifting.

The presence of strong support at $35, backed by the 200-day EMA, suggested that a rebound could be possible if buyers step in. However, if the AVAX price falls below this support, it may trigger further selling pressure and fear among investors.

Whale activity and the sentiment of AVAX holders remained pivotal. This happened as significant ownership by large investors can influence market trends.

Moving forward, the direction of AVAX will largely depend on its ability to hold above $35. Furthermore, the token could break out above $44 to re-establish bullish momentum toward the $50 range.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.