Avalanche (AVAX) Price Forecast Suggests $29.29 Target Remains Possible

• AVAX TVL surged significantly, reflecting growing user activity.
• The current price remains $14.32, continuing its weekly downtrend.
• Technical indicators show sellers firmly controlling the trend.

Avalanche (AVAX) has seen a significant surge in total value locked (TVL), rising 23% in the past 24 hours. This is a good sign of trust and activity among users within its ecosystem because applications and DeFi projects on Avalanche are picking up pace at a very good rate.

Source: @MarcShawnBrown

The rise in TVL also suggests increased liquidity and engagement, which could attract more investors and developers. Everyone is just observing to establish whether this particular trend is here to stay and may improve AVAX’s position within the broader cryptocurrency market.

Also Read: Avalanche Set for Explosive Rally? AVAX Eyes Powerful Jump Toward $48

AVAX Price Action Remains Firmly in Downtrend

AVAX is trading at $14.32 and remains in a clear weekly downtrend. Since October, it’s been forming lower highs and lower lows, breaching key support points all the way down. This week’s bar shows poor buying inside $14 to $13.70. Below this level, $11.20 to $11.50, and $10 becomes a new level to breach for further selling dominance.

The moving averages depict decreasing prices. The shorter period of SMA20 and SMA50 is falling sharply, while the larger periods of SMA100 and SMA200 remain around $24.55 and $29.80, showing a larger negative trend.

All moving averages align bearishly, with the price below SMA20, SMA50, SMA100, and SMA200. Any relief rally would first meet resistance at SMA20 ($23.45) and longer-term resistance at SMA200 ($29.80).

Source: TradingView

The crucial levels for resistance are $16.20 and $20.00, while dynamic resistance is offered by the 20-day simple moving average at $23.45. A slight move may result in a rally to $16.00-$17.00, but sustained growth will require breaking past $20. A strong buying rally may take prices to $29.80 if bulls take dominance. The crucial support levels are $14.00, $13.70, $11.50, and $10.00.

Momentum Indicators Point Toward Further Decline

The weekly RSI stands at 36.12, indicating clear bearish momentum while staying above the oversold level of 30. The moving average is higher at 48.70, which is strongly bearish too. The gap is opening wider, as buyers’ power is deteriorating too. Since both are falling and no bullish divergence is shown, this pair is expected to continue its bear market too.

Source: TradingView

The MACD is at -1.86692, below the signal line at -1.27756, clearly showing a bear crossover. The histogram is at -0.58936, and the deeper negative values show that the downward speed is growing stronger.

Overall, all these values indicate that market developers remain under the control of selling pressures. Unless the histogram values begin to shrink or stabilize, all sub-graph values will continue to favor bearish momentum.

Also Read: Avalanche (AVAX) Eyes Major Rally After $14 Support Bounce Toward $50