Last week’s candle closing below the $53.6 support intensified the ongoing correction in Avalanche(AVAX) price. The resulting freefall reflects a 35% devaluation as coin prices tease a bearish breakdown from the 0.786 FIB level. Will AVAX holders lose the $36 support level?
Key points:
- The AVAX price expiring constant resistance from 20 DMA
- The AVAX price is experiencing buying pressure near $38-$36.5 support
- The intraday trading volume in the AVAX is $2.24 Billion, indicating a 22.4% gain
Source- Tradingview
The Avalanche(AVAX) price fallout from an ascending wedge pattern indicated the sellers are ready to continue the prevailing downtrend. From the breakdown point of $73.5, the altcoin witnessed a freefall of 51% and dropped to $35.89
The extended correction breached the 0.618 Fibonacci retracement level near $60 and currently threatens the 0.786 FIB($38). Earlier today, the AVAX price experienced a strong sell-off displaying another 36% fall.
However, the buyers are trying to wrest control from the sellers resulting in a long-tail rejection candle.
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Therefore, if AVAX buyers manage a daily-candle closing above $38, the traders can expect a minor recovery to the $53.6 mark.
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On a contrary note, if sellers remain in charge and sustain the coin price $38 mark, the correction rally will deepen and hit the $22 mark.
Technical indicator
DMAs- The crucial DMAs provide two additional edges for short-sellers, i.e., a bearish crossover of the 50 and 100 DMA and the 20 DMA offering dynamic resistance to coin price.
MACD indicator– the expanding gap between the MACD and signal line accentuates the aggressive selling in the market. A gradual rise in the histogram chart’s red bar indicates a steady increase in bearish momentum.
RSI– the daily RSI slope plunged to the oversold region indicates the sellers have overextended the downtrend.
- Resistance levels- $38, and $53.6
- Support levels- $22.5 and $16
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