The price correction gets clearer daily as Avalanche attempts to drop lower in a fresh weekly sell. While sellers are stepping back after taking a three-day break, it faces a crucial support level.
Avalanche halted positive momentum earlier this month and fell below the $20 level due to exhaustion from the bulls’ side.
It stayed calm over the last weekend but has shown signs of weakness today as more rally lies ahead. The asset seems to be initiating another bearish action, which could lead to another drawdown in the next few hours.
Although the price is currently sitting on the solid resistance trend line flipped during January’s run-up, retesting it as support. If the line fails to provide support, a lower price movement should be expected.
A hold above the trend line should give the buyers the confidence to step back. Considering the negative sentiments across the space, there is a high tendency for a decrease rather than an increase.
From a technical standpoint, this correction is healthy for the market as it provides a discount for more buying opportunities. A correction below $10 will trigger panic among the bulls in the near term.
The fundamental aspect of it lies in negative news that may have a high impact on the price. All in all, AVAX is currently positioned in a downward range with a weekly 10.5% loss.
AVAX’s Key Level To Watch Out For
A lot of buyers are already trapped in the current crackdown. They may suffer more losses if the price plunges to a nearby support level at $16. The price may even fall to $14 and $12 if the price corrects lower.
A rebound above the mentioned support line could facilitate a retest of last week’s breakdown level at $19.47. The resistance level above it is $21.3. If AVAX can reclaim the 5-month high of $22.8, the next price target will be $23.7, $26.3 and $28 in the short term.
Key Resistance Levels: $19.47, $21.8, $23.7
Key Support Levels: $16, $14, $12
- Spot Price: $17.2
- 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.
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