AVAX is one of the quickest among smart contract platforms within the blockchain universe as per the time-to-finality measurements. It has the most significant number of validators, making it super-fast, low cost, and more environmentally friendly in comparison to Bitcoin due to the Proof-of-Stake protocol. Any dApp running on Ethereum or any other blockchain can outperform on Avalanche.
Since the launch of Avalanche on mainnet in September 2020, the blockchain has gained 1000+ individual validators that have burned $14M+ worth of AVAX tokens helping to reduce supply and more than 200 projects, which represents the lightning growth of this blockchain.
The AVAX coin price experienced an amazing bull ride last week when the opening price was at $48 and gave a closing at $59 resulting in a growth of more than 20%. However, this bull run reversed, which was expected by many due to the increased underlying bearishness in the shorter time frame charts.
Source - Tradingview
AVAX coin price is trading at $51.54 at the time of writing with an intraday fall of 6.93% resulting in the formation of a bearish candlestick in all the major time frames. The token price broke the critical resistance zone near the $38 mark retested in the daily chart. However, the chances of price sustaining above $55 are low due to the weakening of bullish pressure.
Source - Tradingview
In the daily chart, the AVAX token price breaks above the critical resistance level of $60. However, failed to sustain the supply met above the level. This resulted in the price retracing back to $50.
It seems that the price could test the $50 mark before finding the demand to sustain above the $60 mark. Nonetheless, the increased trading volume between the $50-$60 zone may shortly decide the trend.
All the crucial Exponential Moving Averages (50,100,200-periods) are moving higher in the daily chart. This is due to the recent bull run that has provided the price with these new support areas.
Currently, the RSI indicator represents a growth in underlying bearishness as the RSI slope falls back within the neutral territory. This produces a bearish divergence that may soon lead to a downfall.
In short, we can expect the price to undergo short-term retracement before finding demand near various support zones mentioned in the daily chart.
As per the technical analysis, we can expect the AVAX coin price to move back to the support zone of $38 if it breaches below the zone present at $50. Therefore, those who are interested in buying the dip with minimum risk can think of $50 as an entry spot.
Other key support levels are at $45 and $35, and the resistance levels are at $60 and $75.