Avalanche extends declines as MACD confirms ongoing downward trend: weekly report

Traders Union
All News
Crypto
Avalanche falls 9.35% this week

Highlights

AVAX remains under strong medium- and long-term selling pressure, consistently trading below key dynamic resistance levels.
Momentum indicators confirm a bearish stance, with oversold signals and sellers firmly dominating price action.
AVAX is likely to trade between $8.00 and $8.85 this week, with further downside risk and limited chances of recovery.

Institutional inflows surge as Avalanche tokenization reaches record highs

BlackRock's BUIDL fund has become the largest real-world asset on the Avalanche blockchain, holding $625 million and contributing to a new record of $1.16 billion in tokenized assets on the network. This growth highlights notable institutional activity and expansion within the Avalanche ecosystem.

Bearish bias intensifies with oversold signals and elevated volatility this week

On the weekly chart, AVAX is positioned beneath its key moving averages, with the nearest resistance found at the MA-20 ($9.27). The technical landscape is characterized by a strong sell bias: the MACD and ADX both reinforce a bearish trend, while the RSI sits deep in oversold territory at 34.77—an assessment echoed by the Stochastic RSI, CCI, and Bull/Bear Power. Current price action remains at the low end of the weekly range, with volatility measured at 14.79%. This alignment of negative momentum and volatility signals reinforces the ongoing bearish outlook.

Range-bound outlook expected as momentum favors continued downside over week

For the next seven days, AVAX is likely to trade in a narrow corridor between $8.00 and $8.85, with an average price around $8.42. The probability of a significant upward move remains below 20%, as none of the main weekly indicators suggest a reversal. The baseline scenario points to continued range-bound movement near current levels, while a bullish shift would require a break above $8.85 resistance—an outcome that appears unlikely given current momentum. A further decline below $8.00 is possible, as downside pressure continues to dominate the technical picture.

Parshwa Turakhiya, analyst, notes that Avalanche continued to face pronounced selling pressure this week, with price action pinned well below all major moving averages and technical signals flashing oversold. Notable institutional interest, such as BlackRock's BUIDL fund boosting Avalanche's tokenized asset totals, has not yet translated to bullish momentum in price. He expects AVAX to remain range-bound between $8.00 and $8.85 in the coming week, with a breakout above resistance appearing unlikely unless sentiment and momentum shift decisively. Turakhiya highlights that market volatility and negative momentum may still push prices below $8.00. "Staying cautious here — until AVAX can reclaim $8.85 with strong volume, sellers remain in firm control this week."

Previously it was reported that Avalanche was under sustained bearish momentum, with technical indicators signaling ongoing downside risk despite signs of network adoption. The current analysis reinforces this negative outlook amid mounting institutional activity, indicating traders should closely monitor the $8.85 resistance as a potential inflection point for any change in the prevailing range-bound pattern.

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

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.