Finding a base support earlier this month, Avax initiated a buy, but is now losing momentum again after failing to push above $21. The bears are slowly back in action as volume outflow increases in the past days.
Last month saw Avax through a halt in the short-term bearish following a slight recovery, but it later resumed selling after marking resistance at $23.5 in the late month. That sparked a serious meltdown, and it crossed over into this month on a bearish note.
The $14.6 level produced support, and the price bounced back, creating a double-bottom pattern on the daily chart. After a week of increase, it faced rejection again and marked a new resistance at $21 last weekend. It has briefly lost momentum since then and now appears bearish this week.
This has resulted in a slight loss so far, but things might get worse in the coming weeks if the selling volume increases. A notable drop-off from the current monthly low could cause serious pain in the future.
Such a move could invalidate the bullish reversal signal, which came in the form of a double-bottom pattern on the daily chart. Whichever way, the trend is still considered bearish on a mid-term scale. From a technical standpoint, the bears will likely sustain pressure in the coming days.
Avax’s Key Level To Watch
Anticipating more bearish moves, $17.3 and the monthly $14.6 low are the key supports to keep an eye on. A successful breakdown there could dip the price into a new yearly low of $12.5 and $10 in the coming days.
Facing a rejection at the $21 and $23.5 levels in the past month, higher resistance levels to watch for an imminent reversal are $27.2 and $30.
Key Resistance Levels: $21, $23.5, $27.2
Key Support Levels: $17.3, $14.6, $12.5
- Spot Price: $18.96
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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