- AVAX has exited a symmetrical triangle pattern, typically signaling a bearish trend.
- Traders appeared to be closing positions, which often signals uncertainty or reduced confidence in price recovery.
Avalanche [AVAX] has recently shown significant movements in its market behavior, with its price dipping from the symmetrical wedge pattern. Will this move make the altcoin fall to $20?
AVAX’s next move: Trend reversal or deeper dive?
AMBCrypto’s analysis showed that AVAX had exited a symmetrical triangle pattern, typically signaling a bearish trend. The setup suggests a possible downswing, with a target price of around $20.
The pattern, with converging trendlines that represent consolidation before a breakout, suggests strong market indecision before the downtrend confirmation.
Supporting this bearish outlook is the Cumulative Volume Delta (CVD), which has dropped sharply to -5.143M. CVD measures the net buying and selling pressure by comparing buy and sell order volumes.
The negative value shows a dominance of sell orders, reinforcing the ongoing downward momentum.
Additionally, the RSI remains below 50, indicating sustained bearish pressure and limited upward movement in the near term.
Is AVAX undervalued?
The Market Value to Realized Value (MVRV) ratio suggested that AVAX’s MVRV ratio had seen volatility of late, with notable peaks followed by corrections.
A high MVRV ratio often implies overvaluation, where traders might sell to secure profits, leading to downward pressure.
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Author: Clinton Otieno
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