Decrease signals in AVAX: Analysts are waiting for reinforcements in $ 20!

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Decrease signals in AVAX: Analysts are waiting for reinforcements in $ 20!

Avalanche (AVAX) entered the downward trend by breaking the symmetrical triangular formation downward. Can this movement cause the price to decline to $ 20?

How did the AVAX price performance in recent weeks?

According to technical analyzes, Avax’s output from the symmetrical triangle is generally considered as a signal of a decrease. This formation is a structure in which the price determines a strong direction after a certain period of time. Since this break is downward, the target of $ 20 is on the agenda.

The relative power index (RSI) shows that as long as it remains below 50 levels, the upward movement of Avax will be limited and the current drop pressure continues.

Is Avax below its real value?

The market value / MVRV ratio indicates whether AVAX is over -valuable or cheap.

  • The high MVRV ratio indicates that investors can sell to realize their profits and that this can withdraw the price.
  • The low or negative MVRV ratio may indicate that AVAX may be valued lower than it should be and offers accumulation opportunity.

Currently, the price movements of AVAX show that investors are still in unprecedented loss. If the MVRV ratio remains at low levels, it may mean that investors may accumulate before a recovery. However, if there is a sudden rise, it should be remembered that investors can stop the rise by selling profits.

Are investors still interested in avalanche?

Open positions (Open Interest – OI) are stretched: Avax’s open position in the futures markets (OI) has decreased to $ 79,855 million. This shows that speculative operations are reduced and investor confidence has decreased.

If there is a sudden increase in the OI level, it means that the traders’ interest in Avax can revive and price mobility may increase.

Can Avax see $ 20?

Currently, technical indicators and market data indicate that AVAX is in a fall trend and the price may decline to $ 20.

  • The fact that the CVD is negative and that RSI remains at low levels shows that sales pressure continues.
  • The MVRV ratio remains at low levels and indicates that AVAX is still attractive for investors.
  • The fall of the open position in the futures transactions reveals that investor confidence is reduced and the risk of decrease continues.

However, if an increase is seen in OI or if the MVRV ratio is balanced, the AVAX price can be seen in a upward recovery movement. For now, the market is at a critical point to determine the future of Avax.