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Avalanche (AVAX) is currently under significant pressure, with analysts predicting a possible decline below the $15 mark this week. As of now, AVAX is trading near the $19.6 short-term support level, but the prevailing trend remains bearish on the 1-day chart. The overall sentiment in the cryptocurrency market appears weak, particularly as Bitcoin (BTC) struggles to maintain its position below the $60,000 threshold.
Market Dynamics
Recent price movements for Avalanche have raised concerns among investors. From mid-June to early August, the $23.5 level served as a crucial support zone. However, this level was breached amid intense selling pressure and has since been retested as resistance. Following a brief bounce to $22.8, AVAX faced rejection, indicating a lack of buying interest and strong selling momentum. The daily Relative Strength Index (RSI) remains below the neutral 50 mark, while the On-Balance Volume (OBV) continues to trend downward, both of which signal bearish momentum and insufficient demand in the market.
Key Price Targets
In light of the current market dynamics, analysts have identified critical price targets for AVAX in the event of further declines. The next significant support levels are projected at $19.2 and $14.37, determined through recent price action and Fibonacci extension levels. Given that Bitcoin's trajectory heavily influences altcoins like Avalanche, the bearish sentiment surrounding BTC—especially with its current valuation below $60,000—could exacerbate the downward trend for AVAX.
Futures Market Outlook
The futures market for Avalanche is also lacking signs of recovery. On August 8, when the price reached $22.8, the funding rate was barely positive, suggesting a lack of bullish conviction among traders. Open Interest (OI) in the futures market increased from $152 million to $165 million during this period, yet this rise did not translate into strong bullish sentiment. Instead, both the OI and the funding rate have since declined alongside the price, indicating that speculative interest remains weak.
Overall, the short-term outlook for Avalanche appears bearish, with analysts expecting further losses. The combination of strong selling pressure, a retested resistance level at $23.5, and a lack of bullish sentiment in the futures market suggests that AVAX could indeed fall below the $15 mark this week. Investors and traders should remain cautious and closely monitor the broader cryptocurrency market, particularly Bitcoin's performance, as it will likely play a crucial role in determining AVAX's price trajectory moving forward.
As the market continues to evolve, staying informed about these developments is essential, as they can significantly impact trading strategies and investment decisions.