As the Fed troubles continue to tumble the crypto market, Avalanche (AVAX) has gone below the bearish pennant formation. AVAX is now trading at about $30, down 6% in the last 24 hours and at its lowest level since last week.
The global crypto market cap has dropped 2.27 percent to $1.25 trillion in the previous 24 hours. The overall crypto market volume has increased by 11.24 percent to $87.30 billion in the last 24 hours.
Meanwhile, the bears continue to have the upper hand, and a negative market structure is forming as a result of the recent collapse. AVAX has also created a bearish pennant pattern, a technical indicator that indicates the price is about to drop significantly.
AVAX’s Future Plans
The price of the Avalanche is indicating a massive macro sell-off. It’s currently worth about $30. It’s the lowest point in the slide since May, just before a significant drop began. Avalanche’s pricing has entered a potential mudslide.
The next support level for the cryptocurrency is projected to be $12.50. Within the declining trend, the sell-off on May 9 is also the largest. It adds to the uncertainty regarding the stock’s future path.
If the bulls breach the $56 mark, the premise that the AVAX price might soar to $100 is invalidated. A break over this level would indicate that the bulls are more likely to aim for $100, implying a gain of 250 percent.
The Entire Market Shows Fear
The crypto and bitcoin markets, according to Sam Kopelman, the manager of the crypto exchange Luno, are in a state of dread as a result of the collapse of US Treasury securities. He believes that the worry stems from the general market’s volatility.
The stock market in the United States plummeted on Wednesday. The S&P 500 sank more than 4%, while the Nasdaq, which is heavily weighted in technology, dropped 4.7 percent. The near-term association between the stock market and bitcoin has been highlighted by crypto investors in recent weeks. The Federal Reserve’s rate hike and balance sheet reduction have influenced investor sentiment.
Investors are abandoning altcoins and placing their money into bitcoin due to the present panic in the crypto markets. According to Kopelman, the move indicates the coin’s relative strength.
According to Alex Kuptsikevich, a senior market analyst at FxPro, continued market volatility and investor fear are likely to create a panic peak. If the slump continues, he believes bitcoin would fall to roughly $20,000.
Despite the lack of strong signals of recovery in the markets, a prolonged rebound from last week’s lows remains difficult. As a result, the next support area could cost roughly $20,000, It corresponds to bitcoin’s long-term support line.