Avax Loses 50% In Two Months – Will Further Losses Occur?

After hitting an all-time high of $144.96 in November 2021, the native token of Avalanche, Avax, shed 90% of its intrinsic value. Booming selling pressure in the cryptocurrency market contributed to its loss. However, over the last two months, it has dropped 50% of its worth.

Avax Declined By 50% In Sixty Days

CoinGecko’s tracker revealed that the coin is trading at $15.07 at the time of publication. Every aspect of the chart shows the asset in a descending position. According to the crypto tracker, it lost 1.3 percent in twenty-four hours and 3.9 percent in a week. 

Over the last fourteen days, the asset slid, dropping 11.7%. Further, its sixty-day performance record showed it in a downslope with 50% of its worth gone. 

AVAX/USDT price chart: Source TradingView

Although, the coin appears to have broken out of a pattern forming an upside rally. Sentiment remains that it is likely to plunge soon. With a resistance zone not too far above it, its tenacity will determine whether it can break through. 

Due to increased volatility, Avax formed a falling wedge pattern on the chart. Essentially, the asset must close above the resistance line of the wedge to spur buyers. Afterward, they will attempt to push it through the price ceiling at $18.3 and $18.5. 

Crossing that range will see it above the 20-day EMA, indicating bullish momentum. Moreover, the Relative Strength Index (RSI) line has formed a curve facing upward from an oversold level. Given these indicators, Avax might be ready for a bullish moment. 

On the other hand, a rejection at resistance coupled with a break of current support will send the coin diving. Enough pressure from bears will push the asset as low as $12.6.

What To Expect

Coincodex forecasted Avax would hit $15.30 in the next five days. Meanwhile, notwithstanding the uptick, a reversal is undoubtedly imminent. 

It will be up to the bulls to scale the asset upward after its retraction. There will be an intense battle between bulls and bears. The overriding bias is that the coin will dive into a freefall. 

But to keep it upscaling, buyers must take Avax beyond $29. Then, further to $50. Regardless, it is still a long way from its November all-time high. 

Most assets in the market fell from their all-time high in November due to the emergence of the bear market. It first kicked off intensely following the collapse of Terraform Labs. Subsequently, coins and tokens lost half or more than half of their intrinsic value.

Bullish momentums have been short-lived since the bear market kicked in. Hence, the cryptocurrency market struggles to stay afloat. 

Also, global economic crises keep giving investors bad vibes regarding their funds. Recently, an indicator revealed that traders’ risk appetite contracted, resulting in the decline of several assets. 

September’s CPI data catalyzed the latest drop in asset prices. Fears of a recession looming have planted doubts in the minds of investors who are now carefully treading the grounds of financial markets.