This week saw Avalanche through a weak momentum after witnessing a nice recovery in the past weeks. It recently reacted to a key level and bounced off the level a little with a daily 3% increase.
After past weeks of break and retest on the descending trend line formed since May 2022, Avalanche failed to extend recovery above the $22.8 level – which is marked as a five-month high.
The price tumbled that price level below and activated a mid-week reversal, which brought the price into the hands of the bears. So far, it has shed about 22% in the last five days.
Yesterday saw Avax to a weekly low of $17, but the price level was able to suppress selling pressure as it recovered to $18.37 at the time of writing. The ongoing selling suspension may trigger a more price recovery if an imbalance occurs.
Continuing this sell action will become valid if the weekly low level fails to hold as support. Considering the past hours of reaction from the bulls, we may see more price push if they continue to show commitments. As it stands now, the bears are still in control despite the calmness across the timeframes.
Avax’s Key Level To Watch Out For
It appeared to have found a temporal support level for the past 24 hours. While Avax decides on the next direction, the potential support to keep in mind is last week’s low of $16.84, which is slightly below this week’s low.
The immediate support level to watch lies at $16, which is right on the trend line. If the price drops further, the subsequent levels to consider for support are $14 and $12.
However, if the asset manages to bounce back, the first resistance level to consider for a retest is $19.47. A recovery to this week’s high of $21.8 would poise Avax for a breakout. The above resistance level to watch out for is $23.7 and $26.
Key Resistance Levels: $19.47, $21.8, $23.7
Key Support Levels: $16.84, $16, $14
- Spot Price: $18.3
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: inueng/123RF // Image Effects by Colorcinch
