AVAX continues downward trend supported by strong ADX selling signals: weekly outlook

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Avalanche slips 2.51% this week

Highlights

AVAX trades well below key moving averages, indicating persistent medium- and long-term selling pressure.
Weekly momentum remains negative, with major indicators signaling ongoing bearish dominance and minimal buyer support.
Expected price range for AVAX is $8.22 to $10.35 over the next week, with a higher likelihood of continued decline.

ETF launch and institutional participation boost sentiment this week

Bitwise recently launched the Avalanche ETF (BAVA) on NYSE Arca, with a waived trading fee for the first month on up to $500 million in assets. This move draws attention to Avalanche’s blockchain architecture, specifically its ability to enable customizable networks for institutional clients such as banks, gaming firms, and governments. Notable organizations including BlackRock, Apollo, Toyota, the State of Wyoming, and FIFA are active participants in Avalanche’s ecosystem.

Persistent downtrend and negative momentum reinforce weekly bearish bias

On the weekly chart, AVAX remains in a clear technical downtrend, with price action persistently below all major moving averages (MA-20, MA-50, MA-200). Weekly support is near $8.22 with resistance around $10.35. Momentum remains negative: the MACD is on a strong sell, the ADX signals selling pressure, and the RSI is in sell territory at 37.14. The Stochastic RSI signals overbought conditions (100), while the CCI is neutral and Bull/Bear Power remains negative, reinforcing bearish sentiment as AVAX trades in the lower part of its weekly range.

Sideways action expected with downward risk as signals stay bearish

For the next 7 days, AVAX is expected to trade within the $8.22 to $10.35 range. The probability of a meaningful rebound is low, as none of the key weekly indicators are in buy territory. The base case is a sideways movement inside this corridor, with downside risk prevailing if selling momentum intensifies. A breakout above $10.35 would be required for a bullish scenario, while persistent negative sentiment could push the price towards $8.22.

Previously it was reported that Avalanche continued to face persistent bearish momentum despite increasing institutional involvement and the launch of a spot ETF. This article reinforces that technical weakness remains dominant, underscoring that traders should closely monitor the $8.22 support as the next potential inflection point for AVAX.

Source of Data: AVAX Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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