Avalanche Still in Bears’ Grip, but for How Much Longer?

Traders are dropping Avalanche as the long-tail bear trend continues, causing AVAX to lose 4.03% today.

The news is not all bad for Avalanche, though, as it did gain 9% over the last month. It is just the short term outlook that is poor, and that may hold it back from retaining its gains for now.

The short-term trend is looking bearish, with losses of nearly 13% over the last seven days. At the same time, AVAX is losing trade volume, which is down 24% for the last 24 hours.

Avalanche just experienced its $365 million token unlock milestone, which is not something most investors will celebrate. That is because when unlock milestones like this happen, the price tends to slump. In many instances, the circulating supply outpaces the demand for the coin, and that seems to be the reason for AVAX’s recent decline.

When Will Avalanche Rebound?

Expect the AVAX price to turn around soon, as the coin has proven its resiliency this year. Even though it started to drop as soon as the year started, most of those losses were recovered by mid-February. AVAX is going through an overall bullish period with a support level of around $37, and we expect theocon to bounce back there very quickly.

Avalanche was last above the $40 level on Monday and should have little problem getting back there. If Bitcoin (BTC) and the wider cryptocurrency market stay down, though, then the downtrend could carry Avalanche below the $35 level.

Investors should be watching Bitcoin closely to see when AVAX will come back, as the BTC rate will help to carry the wider market. Avalanche is ranked #9 right now and has lost more than most crypto coins for Wednesday, but that could easily shift tomorrow if the market bounces back.