- AVAX maintains $18 support as China responds to U.S. trade policies with tariffs.
- Cryptocurrency markets begin to stabilize as investors search for alternatives amid escalating geopolitical tensions and uncertainty in equity markets.
- Avalanche’s price is consolidating within a tight range, indicating a possible breakout if macroeconomic pressures lead to increased investment in crypto.
This week, Avalanche (AVAX) traded within a confined 2% range of $18 to $20, reflecting stability as markets navigate geopolitical fluctuations.
Avalanche stands strong as U.S.–China trade disputes fuel risk-averse sentiment
The price of Avalanche (AVAX) held steady around the $19 mark on Friday, continuing a three-day consolidation phase amid rising global trade tensions. Earlier this week, the U.S. imposed a new set of tariffs, which led to increased selling across worldwide equity markets. AVAX saw a brief drop to $17.60 on Thursday, hitting its lowest point for the week.
Nonetheless, Friday brought signs of stabilization. China announced retaliatory measures in response to the U.S. tariff actions.
The 34% tariff imposed by China has raised concerns about extended trade conflicts, compelling investors to reassess their risk strategies.
U.S. stock markets fell further in light of the news, while notable assets like Avalanche began to garner renewed interest.
Avalanche (AVAX) price analysis
Trading volumes for AVAX increased by Friday afternoon, indicating a rise in activity within the consolidation range.
Market participants are increasingly viewing digital assets as protective assets against macroeconomic and geopolitical uncertainties.
As worries grow over the potential impacts of the trade war on the global earnings outlook, the crypto market’s relative detachment from traditional trade dynamics is gaining attention.
Historically, capital often flows into cryptocurrencies during periods of decreased investor confidence in equities and fiat currencies.
Avalanche’s solid support between $18 and $19 suggests that traders might be positioning themselves for a breakout in the coming days, should risk-averse sentiment intensify.
AVAX price outlook: A potential move towards $20 if BTC recovery persists
The price of Avalanche (AVAX) appears to be consolidating around $18.50, with technical indicators hinting at a cautiously bullish configuration, which may lead to a breakout towards $20.
AVAX price has been stabilizing around key support levels, demonstrating resilience following a recent dip from the $22 high.
The Super SMA indicator shows mixed signals, with the yellow and green lines trending downwards, while the red SMA at $19.88 serves as a major resistance point.
Currently, the price is trading below all three moving averages, suggesting a bearish short-term perspective. However, the shrinking gap between moving averages implies that downward momentum may be waning.
AVAX price forecast
The Relative Strength Index (RSI) is currently around 42.15, indicating that AVAX is situated in neutral to oversold territory. Should buying pressure increase, the RSI could rebound to the 50 mark, bolstering the case for bullish momentum.
Meanwhile, the volume indicator reveals a decrease in trading activity, suggesting a reduction in selling pressure.
If volume increases during an upward move, AVAX could test the $19.88 resistance, potentially aiming to retest the psychological $20 mark.
A rejection at these levels could push AVAX toward $17.50, but if bullish sentiment prevails, a breakout remains plausible, depending on the wider market sentiment.