💵 $AVAX Set to Extend Losses as Traders Tilt Bearish - BeinCrypto Analytics

Meanwhile, AVAX’s market structure on the daily chart suggests a potential fall. The Exponential Moving Average (EMA) is a crucial indicator that corroborates this bias. 

EMA measures trend direction and reflects how prices can change within a given period. On the AVAX/USD daily chart, the 20 EMA (blue) crossed below the 50 EMA (yellow) since April 13. 

This position is called a death cross and is a bearish trend. It occurs when the longer EMA crosses above the shorter EMA. The opposite is the golden cross that occurs when the shorter EMA crosses above the longer EMA.

This position puts AVAX at risk of a decline to $29.38. Further, the Directional Movement Index (DMI) supports the potential price decrease.

The chart below shows that the -DMI (red) was 27.58, while the +DMI (blue) was 11.85. DMI measures both strength and direction. Therefore, the difference between the +/-DMI suggests a downward direction for AVAX.  

Also, the Average Directional Index (ADX) trends upward. The ADX (yellow) shows the strength of the direction. If the ADX spikes, it means that the direction has strength behind the movement. 

However, a low DMI reading means that the directional strength is weak. In AVAX’s case, it was the former.