AVAX and ALGO fell nearly 10% on Friday following the release of the latest US inflation figures. According to the data, inflation is currently at 8.6%, approaching a 40-year high. Both AVAX and ALGO were near one-week lows on the news.
Avalanche (AVAX)
AVAX approached a one-week low on Friday as prices fell following the release of US inflation data.
After hitting a high of $25.29 on Thursday, AVAX/USD fell to a low of $22.78 earlier in the session today.
This drop means that the support level of $22.50 is approaching and AVAX has fallen for four consecutive days.
Today’s low is trading at its lowest level since last Saturday and many are watching to see if we see further declines later this week.
Looking at the chart, the 14-day RSI also appears to have bottomed at the 35 level, and if this holds, we may not see further price declines.
This is positive news for the bulls, who will likely wait for signs of a reversal before re-entering the market.
Algoland (ALGO)
Like AVAX, ALGO also hit a new low for the week, dropping in value during today’s session.
As of this writing, ALGO/USD has hit an intraday low of $0.3696, nearly 10% lower than yesterday’s session peak of $0.4156.
Today’s low is slightly above the recent support level of $0.3665, the first time prices have approached this floor since June 4.
The last time the price broke below this floor was on May 12, when ALGO hit its lowest level since January 2021.
Since then, this level has been relatively durable, but after this week’s decline, there is added pressure on the bears to retake the new 18-month low.
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