AVAX’s reaction to price has increased negatively since it plunges below $17. It will likely suffer more losses following today’s breakdown from a consolidation phase.
Support levels are getting flipped daily as Avalanche continues to extend bearish actions. The price has been falling consistently for two weeks with no strong signs of reactions from the bulls.
The retracement movement – which started last month – is fast reaching the key descending trendline that has served as resistance in the past months. However, it provided support in February. But it doesn’t appear to do the same with the ongoing sell-off. The price could tank heavily in the next few days.
It just lost grip at $16 after trading in the middle of consolidation for four days. While selling pressure is just building on the daily timeframe, the price is already dropping on the 4-hour timeframe.
As long as the bears continue to gain dominance, we should expect more breakdowns to occur. A reaction from the bulls’ side could bring relief and, at the same time, fuels a small bounce to form a lower high at around $19.
If the bulls fail to show commitment, the bears will continue overpowering them in the quest to take more lows. A look at the price actions from a macro level indicates that the trend is still in favor of the bears.
AVAX’s Key Level To Watch
The closest support level to the current trading price is $15.56. It is then followed by the January surge level of $14.45. There is another major support at $12.
A recovery above the $16.9 resistance level could give room for small buy actions to $19.47. The key resistance level to keep in mind is $21.8 if the price recovers well. The increase in selling volume may hinder positive actions at press time.
Key Resistance Levels: $16.9, $19.47, $21.8
Key Support Levels: $15.56, $14.45, $12
- Spot Price: $15.9
- 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: photogranary/123RF // Image Effects by Colorcinch
