Avalanche (AVAX) Nears a Critical Juncture: Will $6 Trigger a Bounce or Breakdown?

• Avalanche Payments Collective debuted yesterday.
• AVAX is currently trading at around $6.

Avalanche Payments Collective was launched yesterday. Founding participants include Franklin Templeton, VanEck, Paxos, Agora, Ethena, Rain, and others spanning the payments stack. The Collective brings together companies spanning stablecoins, treasury infrastructure, foreign exchange, custody, card issuance, asset management, and global payouts.

Moreover, the future of payments requires more than faster transactions. Moving money globally involves liquidity, settlement, compliance, treasury management, custody, foreign exchange, and local payment networks operating together as one.

Significantly, the collective’s initial members support payment flows reaching more than 150 countries, 96 currencies, and around 22 billion payout endpoints across bank accounts, cards, and mobile wallets.

While looking at the crypto market, among the altcoins, Avalanche (AVAX) has slipped over 9.46% in the last 24 hours. In the early hours, it has traded at a high of $6.68, and with the bearish encounter, the price has plunged to a bottom of $6. At press time, Avalanche traded at $6.01, and the trading volume is up by 24.22% to $401.11 million. 

Avalanche’s recent price chart reveals the bearish momentum, with the crucial support at $5.72. If the downside pressure strengthens, the death cross might take place, sending the price into the $5.48 range. Assuming a bullish turn, the AVAX price could climb to the resistance at $6.21. In case the upside correction gains more traction, the price would move up toward $6.42, along with the formation of the golden cross. 

Avalanche Technical Outlook: Is Further Downside Expected?

Both the Moving Average Convergence Divergence (MACD) and signal lines are below the zero line, indicating that the AVAX market is bearish. The price is trading below its longer-term average, reflecting a continued downtrend, unless there is a move back to the zero line.

(Source: TradingView)

The Chaikin Money Flow (CMF) indicator value of Avalanche at -0.28 suggests a strong selling pressure and notable capital outflows. The sellers are dominating the trading activity, and this level leans toward the bearish market. Also, it is a sign of sustained distribution.

AVAX’s Bull Bear Power (BBP) reading of -0.790 exhibits moderate bearish pressure. This negative reading shows that the downtrend is not at an extreme level. The bears remain in control, with buying interest needing to strengthen before a recovery can develop.

(Source: TradingView)

Besides, the daily Relative Strength Index at 28.85 showcases that Avalanche has entered the oversold zone. The selling pressure has been strong enough to push momentum to an extreme level. With this level, traders are on alert for a potential bounce or relief rally.

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