Avalanche bears gather strength as price of the AVAX token plummets 4% – FXStreet

Science & Technology

Ekta Mourya Ekta Mourya
FXStreet

Avalanche bears take control of the fastest blockchain network as the token’s price plummets. Despite a spike in utility and on-chain activity, the token’s price has struggled to recover. 
In the recent DeFi boom, prices of several decentralized project tokens increased. However, Avalanche has suffered a price drop. The token’s foundation distributed the $180 million “Avalanche Rush” initiatives, attracting more investors and developers to the platform. 
Though there was a spike in on-chain activity, Avalanche price was subjected to selling pressure across exchanges. 
The token has posted 13.5% losses over the past week. Avalanche hit its all-time high above $144 a month ago. The token enables near-instant finality and scalability for its ecosystem, attracting users to the platform. 
@Murfski_, a pseudonymous cryptocurrency analyst has evaluated Avalanche price and predicted a bullish weekly structure. @Phoenix_Ash3s, a crypto analyst and trader believes that Avalanche price could drop further, and has a bearish outlook on the asset. 
Analysts noted the formation of a double top, considered an extremely bearish technical reversal. The asset failed to break resistance at $135, entering a bearish price trend. 
As Avalanche price continues to decline, analysts have predicted a drop to $78 level. Sellers are dominant on cryptocurrency exchanges, increasing the selling pressure on the asset. A spike in selling pressure fuels a bearish narrative for Avalanche price. 
Alexander Lorenzo, a crypto analyst and YouTuber believes that Avalanche price could drop further. The bullish trend could break with a drop below $100. 

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Decentraland price has been retracing after slicing above the upper boundary of the prevailing chart pattern. However, the bullish target of $4.93 will remain intact as long as MANA stays above $3.28.
Chainlink price has been quite bearish during the Tuesday trading session. LINK has moved lower by nearly 12% at one point during the day. However, the pullback was warranted as Chainlink had gained over 41% from the December 15 swing low.
AVAX price action has seen its series of whipsaws for Dec, another occurring today. Since Dec 23, AVAX has been bound to the inside of the Ichimoku Cloud – a behavior that is likely to continue until a clear breakout occurs. Key Ichimoku levels are currently acting as resistance and support.
Bitcoin had one of its less volatile years in 2021, with a 138% variation between the highest and lowest price point. Still, the year saw its fair share of whipsaws as BTC’s price action provided more entry and exit levels for investors to profit. 
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