Why is Avalanche Price One Support-Break Away From 20% Fall?

Over the past two weeks, the crypto market has witnessed a notable downturn following the lead of Bitcoin price which recently plunged below $65000. While the aggressive selling price sparked a correction phase in most major coins. The Avalanche coin price shows notable resilience above $50 psychological support. Will this demand pressure trigger a fresh recovery trend?

Also Read: Avalanche (AVAX) Price Rallies 12% As Binance Announcement Boosts Market Sentiment

Can Avalanche Price Defend $50 Support?

On March 12th, the Avalanche price gave a bullish breakout from the $50 neckline resistance of the cup and handle pattern. This breakout signaled the asset’s escape from a 22-month sideways trend and the start of sustainable growth.

However, with the broader market entering a correction trend, the AVAX price turned sideways witnessing high volatility since last week. Analyzing this consolidation in the 4-hour chart shows the formation of an expanding channel pattern consisting of two diverging trendlines.

In tandem with the Bitcoin correction, the AVAX price dropped 20% in the last 48 hours and retested the $50 mark and pattern’s lower trendline, The Avalanche coin currently trades at $53.42, with a market cap of $20.13 Billion. 

As per the latest news, Avalanche is partnering with Alipay+ to roll out a Web3-supporting e-wallet and voucher program. As highlighted by Wu Blockchain, this collaboration aims to leverage an Avalanche subnet, managed by AvaCloud, to potentially reach over 100 million users in Southeast Asia, further bridging the gap between blockchain technology and mainstream financial services.

Avalanche is cooperating with China's largest payment APP Alipay+ to launch an e-wallet and a voucher program that supports Web3. The Avalanche subnet built and managed by AvaCloud provides support for this program and is gradually expanding to 100 million users from the…

— Wu Blockchain (@WuBlockchain) March 20, 2024

If the AVAX price breaks below $50, it will lose the psychological level, and the channel pattern support, and possibly invalidate the cup and handle pattern. A successful breakdown triggered a quick 20% downfall to hit $40, followed by immediate support at $35.

Technical indicators

• Exponential Moving Average: The coin price trading above 100-and-200-day   indicates the long-term trend remains.
• Relative Strength Index: The daily RSI slope at 43% reflects the sellers are driving the near-term trend in Avax price.