Avalanche price analysis: AVAX below $70 as volume declines

Avalanche price analysis for Jan 31, 2022, comes with a bearish analysis. The token’s closest competitor, Polkadot (DOT), has also been bearish. From our Polkadot price analysis for Jan 31, it seems that Avalanche is outperforming Polkadot (DOT), up 7% in the last 7 days. 

Moreover, the data from CoinMarketCap shows a 7.71% drop in the market cap, followed by a 17.98% drop in the trading volume. Moreover, the highest price of AVAX in the last 24 hours was $72.23. For a few weeks, Avalanche volume has been low, as covered by our Avalanche price analysis for Jan 12.

The daily candle for Avalanche was initiated at the price of $67.9 and reached a daily high of $68.40. The selling pressure surged, and as a result, prices fell below $65, which marked the daily low of $64.6. Contrary to the previous levels, AVAX gained a position in the top 10 after making a new ATH in late November.

Avalanche price analysis on the daily chart

Avalanche price analysis on the daily chart below shows that the price action is nearing the lower end of the Bollinger Bands. If selling pressure continues to surge, we might witness a breakout from the lower end of the Bands.

Source: TradingView

On the other hand, the RSI levels continue to progress in the bearish zone. The gradient of the line is negative, which suggests that lower prices might follow.

Source: TradingView

Conclusion

Recently, Avalanche and Dogecoin had a strange rivalry in which Avalanche prevailed, as reported by TheCoinRise. Furthermore, our Avalanche price analysis is bullish for the long term. The AVAX team has been improving the network constantly. Recently, Avalanche launched Blizzard, a $200 million fund to improve the Avalanche ecosystem, which has gained a lot of popularity in 2021.