Avalanche (AVAX) is trading near an important long-term technical level, with analysts watching its overall structure. The coin is testing the support level at the lower boundary of the descending triangle in the weekly chart, an important level that has been tested multiple times in the past.
On Saturday, February 28, AVAX is trading at $8.64, showing a 4% decline in the past day. The trading volume is down by 3% and is currently standing at $341.86 million. Over the last week, the AVAX coin price has decreased by 6.94%.
Source: CoinMarketCap
AVAX Support Strength and Target Zones
Crypto analyst Jonathan Carter highlighted that the coin is holding the support level of the descending triangle on the weekly chart. This support level has held since 2021, and the long-term formation is still in place. Market participants continue to observe the area closely as price reactions develop.
The analyst also provided the potential price levels that the coin could reach if it stabilizes at the support level. These levels include $13, $17, $30, $40, $55, $85, and $120, depending on the price reactions if moving past the resistance levels and the confirmations of the trends.
Source: X
Futures Volume and Open Interest Decline
According to CoinGlass data, the volume has decreased by 7.24% to $548.90 million. The open interest has also declined by 5.68% to $362.26 million, indicating that the level of activity in the leveraged positions has reduced. The OI-weighted funding rate is at -0.0063%.
Source: CoinGlass
Also Read: Avalanche (AVAX) Price Could Reach $126 If Altcoin Season Emerges
Technical Indicators Show Ongoing Downtrend
From a technical perspective, the 20-day EMA for AVAX is $9.18. The price of AVAX continues to be below the EMA. The current value of the 50-day EMA is $10.37. This indicates that the coin has a strong downward trend.
The 100-day EMA for AVAX is $12.44. The value of the 200-day EMA is $15.71. The token has been below this level for a long time. This indicates that the coin has been in a long bearish trend.
The Moving Average Convergence Divergence (MACD) line is currently at -0.43. The signal line for AVAX is -0.54. The histogram currently shows a value of 0.11. This indicates an improvement in momentum.
Source: TradingView
AVAX is currently holding near a crucial level that has defined its multi-year structure. This level has been tested multiple times, and the support level has held its ground so far. The next move will depend on how long the support level continues to hold.
Also Read: Binance Coin (BNB) Under Pressure: Bearish Break at $570 Next?
