Avalanche (AVAX) Price Approaches $20 Amid Market Decline
Avalanche (AVAX) is approaching the critical $20 mark amid a widespread market decline, prompting panic selling among investors.
Technical Indicators
- AVAX has been in steady decline since February 1 after failing to break the $34.40 resistance level.
- The Relative Strength Index (RSI) is in oversold territory, indicating potential for reversal.
- The Bull Bear Power (BBP) remains negative, suggesting continued bearish pressure.
- Failure to surpass the descending trendline indicates prolonged correction risks.
Avalanche Fear Index
- The crypto fear and greed index has dropped to 35, signaling extreme caution in market sentiment.
- Readings below 35 indicate severe market anxiety, historically linked to turning points.
- Lack of "buy the dip" activity suggests ongoing selling momentum may lead to further declines.
On-Chain Data
- IOMAP analysis reveals significant resistance at around $23.60, controlled by over 128,000 addresses holding 3.31 million AVAX.
- Many holders are at unrealized losses and may sell at breakeven, creating a "sale wall" that could hinder price recovery.