Decoding AVAX: Recent Fluctuations, False Rumors, Road Ahead

AVAX was one of the most prominent cryptocurrencies during the recent bull run, but similar to other cryptocurrencies, the native token of Avalanche is undergoing corrections and a decline.

This may appear to be an isolated incident, but there is a good possibility that a reduction in value is imminent.

Over the past few months, the price of AVAX has increased by 113%, propelling Avalanche from $8.75 to $19.16. Nonetheless, this upswing was followed by a significant downturn over the past twenty-four hours, in which the altcoin lost over 15%.

The correction almost certainly reacted to the false rumor that BlackRock had issued an XRP exchange-traded fund (ETF), which was promptly refuted. Still, the decline may have lasting consequences.

Nevertheless, the Moving Average Convergence Divergence (MACD) metric suggests a favorable trend.

The strength assessment indicator for the asset has not yet identified a distinct downward trend.

Although the diminishing green bars indicate a reduction in bullish sentiment, the MACD line (blue) has not yet crossed beneath the signal line (red).

A practical bearish crossover would indicate the confirmation of a bearish signal, which would facilitate an increase in prices.

The price of AVAX rebounded after encountering the $16 support line but could not surpass the $19.17 barrier. This demonstrated that the 15-month consolidation level is a standard price of resistance.

However, the gradual yet robust collaboration would empower the alternative currency to avert a downturn.

Nevertheless, should the cryptocurrency rebound and recover, it could potentially reclaim the peak levels it reached in 2023.

Until then, a gradual recovery of the recent losses will likely be the case. A breach of the $19.17 resistance, however, would render the bearish thesis invalid.