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Avalanche (AVAX) may be on track to retrace its current bearish movements as the market is showing general signs of recovery. This crypto winter, AVAX has been battered, with its price falling by more than 89% over the past year.
At the time of writing, Avalanche is trading at the price of $11.72 atop the marginal growth of 0.14% over the past 24 hours. Based on its bearish sell-offs, AVAX has fallen in the rankings and is currently at number 18 atop a market capitalization of $3.65 billion.
A look at the AVAX/USD Chart, as seen on TradingView, shows that the digital currency has been under the subjugation of the bears since it recorded a sharp spike to $14.60 on Dec. 22.
Following that surge, the coin touched a low of $11.14 and has been experiencing low volatility since then.
Judging from the current sell-off it has recorded thus far, the Relative Strength Index (RSI) indicator shows a reading of 39.59, a yardstick defining exhaustive bearish action.
With overstretched selling, the price of AVAX appears to have bottomed out, and upward momentum may be recorded from here onward. This projection, per the RSI, is further bolstered by the Bollinger Bands, which shows that the coin has started retreating from its lows.
AVAX has general market trend to contend with
By reason of both its technical and fundamental engagements, spanning to the onboarding of the International Chess Federation (FIDE), AVAX has enough of a boost to change the course of its growth. The coin has a lot of new price discoveries and resistances to breach for it to retest its all-time high (ATH) price of $146.22 attained last year in November.
The major odds for Avalanche to contend with, however, is the general market momentum that has remained increasingly bearish. With Bitcoin (BTC) still defining the pace of growth of the most promising altcoins, the chances that AVAX or any other coin can have a solo breakout in the near term are slim.
Despite this, we can expect AVAX to end the year at a price of $13.50 should the bulls choose to stick to their buying momentum.
Vladislav Sopov