Analyst Predicts Next Major Drop for Avalanche in 2024’s Correction

• Alan Santana suggests Avalanche’s correction could find support between $12 and $13, with consolidation expected before a bullish wave.
• Allegations of centralization could pose legal and security risks, potentially classifying AVAX as a security in the future.

Crypto analyst Alan Santana has commented on Avalanche’s current market downturn and where it may be going next.

On TradingView, Santana presented his analysis that begged important questions: “How far down can it go? Where is our corrected path leading? Given the volatility of the crypto market, these issues are, he thinks, quite pertinent.

Key Support Levels and Final Decline for Avalanche in 2024 

According to Santana’s technical analysis, the MA200 (200-day moving average) is important and has held unaltered as a resistance point during this inverted correction.

Usually indicating a change from an upward trend to a downward one, the rounded top on the chart signals that Avalanche (AVAXUSDT) may be in for more downside before steadiness. “You never get a curve when prices are rising; rather, we see higher highs,” Santana said.

Source: Alan Santana on TradingView

Santana added that the important support level is between $12 and $13, which he thinks might offer some short respite. Though the October 2023 low of $8.88 might not necessarily be retested, he also cautions of a probable plunge to $9-$10.

“We do see a lower low coming, but the chart does not call for the extreme, though it can happen,” he said.

Santana underlines that this will be the last significant decline of 2024 and the end of the corrective phase, and there will be a period of consolidation before the following bullish wave. Beyond this, Avalanche should show a long-term increase.

On the other hand, CNF has reported that claims of centralizing could provide Avalanche with legal and security issues. These issues could cause AVAX to be labelled as a security, influencing its future acceptance and general market position.

Such a designation might not only subject AVAX to more regulatory scrutiny but also perhaps restrict its attractiveness to both institutional and ordinary investors.

Meanwhile, AVAX is trading about $25.51 as of writing, rising 1.10% over the last 24 hours. It has a daily trade volume of over $134.59 million.