AVAX Price Might Face a Huge Decline After an Extended Price Rally

AVAX price showed a 126% increase between June 19 and August 8. However, its merry days ended after the price consolidated to $25.47. The analysts predict that the price decline will lead to further degradation and a crash is around the corner. Fxstreet reports investors to expect a 22% price decrease soon, to the $17.58 mark. The crypto market has shown unpredictable signs, and investors must be wary of the possible dangers. The reports indicate a sudden potential sell-off might retrace AVAX’s price to the $20.16 mark. Reports show that the trend lines connect with the swing points to form an ascending pattern.

Several cryptocurrencies have suffered a price decline

Apart from AVAX, the crypto giants, including Bitcoin and Ethereum, have suffered similar fates recently. Both the cryptocurrencies’ prices shot down to record lows in a few years during the 2022’s market crash. However, their prices consolidated after June and gave investors much hope. The cryptocurrencies are a long way off from their all-time highs despite extended price rallies. The previous week showed a continuous price decline in crypto prices and their re-entry into the bearish trend. The crypto market is highly volatile and keeps investors on edge; several long-term and short-term factors dictate the market’s course.

AVAX might go either way

A break from the $25.47 resistance level might shoot AVAX’s price above the $0.30 mark and reinstate a bullish scenario. However, the failure to achieve the same might lead the currency to further lows in the future. AVAX’s present market scenario indicates a potential sell-off; its current support level is $22.43. Fxstreet reports that the currency’s price reversal to $20.16 will significantly benefit short-term investors. Analysts suggest investors carefully observe the AVAX price pattern and prepare for the worst.