🌨️ Avalanche (AVAX) Price Analysis - December 20, 2024 🌨️

📉 Recent Price Movement:

Avalanche (AVAX) saw accelerated selling after breaking below the 20-day EMA ($45.64) on December 18.

The AVAX/USDT pair has now dropped below the 50-day SMA ($39.94), signaling potential bearish dominance.

🔍 Key Insights:

The drop below the 50-day SMA indicates that the breakout above $51 may have been a bull trap.

If the price sustains below the 50-day SMA, AVAX could fall further to the next support level at $30.50.

📊 Technical Outlook:

Buyers might attempt a recovery but will face resistance near the 20-day EMA ($45.64).

A break and close above the 20-day EMA would suggest easing selling pressure and could hint at a potential reversal.

🧐 What to Watch For:

1️⃣ Sustained trading below $39.94 may signal further declines toward $30.50.

2️⃣ A strong breakout above $45.64 could reignite bullish momentum.

⚡ Market sentiment remains cautious, so traders should be prepared for increased volatility!