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Seeking Alpha 2025-10-08 20:01:00

Avalanche Price Tests Key Support As Bearish Momentum Persists (Technical Analysis)

Summary AVAX trades below clustered EMA resistance between $30.30–$30.40, maintaining a bearish structure. Netflows showed +$2.10M inflows, indicating a temporary pause in aggressive outflows. Rising Bitcoin dominance above 58% continues to pressure altcoins, including AVAX. By Ashutosh Sureka Avalanche (AVAX-USD) is currently trading at $28.39, down 1.7% over the last 24 hours as altcoin weakness deepens amid rising Bitcoin dominance. The token is moving within a $27.92–$30.02 intraday range, reflecting indecision after consecutive sell sessions. Market cap stands at $11.98B, with a fully diluted valuation of $12.99B and 24-hour trading volume above $1B, signaling heightened speculative activity. Futures open interest remains elevated at $1.51B, indicating significant leveraged positioning despite soft price action. Technical picture AVAX remains under pressure below all key EMA levels. The 20 EMA, 50 EMA, 100 EMA, and 200 EMA are tightly clustered between $30.30–$30.40, forming a strong resistance ceiling. Price has failed to reclaim these levels following its rejection near $33 in late September. OBV readings have continued to deteriorate, signaling persistent distribution since the start of the week. Avalanche price dynamics (Source: TradingView) Price currently sits near the $28 support zone, which has served as a short-term accumulation area in previous pullbacks. A clean daily close below this level could expose $26.50, while a decisive move above $30.40 would be required to break the current bearish structure and trigger a broader recovery. Fundamental positioning and outlook On-chain flows show a mild improvement, with +$2.10M net inflows, breaking the streak of sharp outflows seen in late September and early October. This suggests some traders are stepping back from aggressive selling, though it remains unclear whether this represents accumulation or a temporary pause. Sector-wide dynamics are weighing heavily. Bitcoin ETF inflows have accelerated, driving BTC dominance above 58%, which historically coincides with altcoin consolidation phases when macro liquidity is tight. Derivatives positioning remains elevated, and softening funding rates point to traders unwinding leverage amid these dominance shifts. Despite near-term weakness, Avalanche’s ecosystem remains fundamentally active, with continued real-world asset integrations and institutional partnerships providing a long-term bullish backdrop. However, current price dynamics are being driven more by market structure and technical resistance than by fundamentals. Short-term outlook The $28 support level is now a key battleground. Holding this zone could allow AVAX to consolidate and attempt a recovery toward $30.40, which remains the primary resistance pivot. A breakdown below $28 would likely trigger stops and expose $26.50, the next significant support level. In earlier analysis, the $30.40 EMA cluster was highlighted as the crucial resistance trigger. That remains unchanged, with price action now gravitating toward testing the lower boundary of its consolidation range. This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer . While we adhere to strict Editorial Integrity , this post may contain references to products from our partners. Original Post

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