AVAX Price May Revert 12% Higher Before The Bear Cycle Hits $16
Published 2 days ago
For nearly two and half months, the AVAX/USDT pair railed within a broadening wedge pattern of the daily time frame chart. Following this pattern, the short-term recovery in this coin reached and formed a local top at the $30 mark. Furthermore, the bearish reversal from this resistance amid the US Fed hint at the increasing interest rate in September caused a significant correction rally.
Key points from AVAX analysis:
- The AVAX price losing the 0.618 FIB will indicate weakness in bullish momentum
- The daily-RSI slope dives deeper into bearish territory, supporting the extended correction theory.
- The intraday trading volume in Avalanche coin is $442.4Million, indicating a 5.17% gain.
In theory, this bearish continuation pattern accelerates the selling pressure once the price breaks the ascending support trendline. Thus, on August 26th, the broader market witnessed a strong sell-off which bolstered sellers to breach the pattern’s support trendline.
So far, the AVAX price has plunged to the $20 mark, registering a 33.4% loss in the past two weeks. However, this psychological level aligned with the 0.618 Fibonacci retracement level offers a strong confluence launchpad to bolster bullish reversal.
However, a possible reversal may act as a retest phase to channel breakdown and will surge the prices 12% higher to hit the breached trendline at $22. If the retest candle sustains below the trendline, the interested short sellers could grab a good entry opportunity.
The post-retest downfall will pull the AVAX price below the $20 mark and extend the ongoing correction another 20% lower, and hit the $16 mark.
On a contrary note, if the altcoin jumps above the flipped resistance trendline during the retest phase, the bearish thesis will get invalidated.
Vortex indicator: the wide gap between the VI+ and VI- slope in a bearish alignment indicates the bear poses trend control.
EMAs: a bearish crossover among the 20-and-50-day EMA may attract more sellers to continue the price fall to $16. Moreover, these breached EMAs should offer viable resistance to maintain a bearish trend.
- Resistance levels: $22.16 and $26.2
- Support levels: $20 and $16
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.