Avalanche (AVAX) resumed a downward spiral last weekend after experiencing several drops in the past weeks. This led to the breakdown of April’s support yesterday, and now aiming to revisit the first quarter low.
The sentiments in the overall crypto market remain bearish with a lot of decrease in the past few days. Avax started to drop last month after witnessing a third rejection at a crucial supply zone, drawn orange on the price chart.
After the drop, it consolidated briefly above a four-month ascending trendline and later cracked down to a low of $14 yesterday. The bleeding appeared not over yet as selling remain calm. Meanwhile, the $15.5 level has been serving as resistance since the start of the day.
An attempt to reclaim that level has been proven abortive. A successful push above the level could bring a small recovery to price with a potential test at $16 before resuming decline.
Failure to reclaim the immediate resistance level could result in more dips and that could make the price to further test the March’s low.
The daily volume indicator is slowly fading out. If the buyers show up and the volume starts to increase, we can expect the price to bounce back as well. As it stands now, a high amount of volume outflow is likely to trigger more sell actions in the coming hours.
AVAX’s Key Level To Watch
The potential support level to watch for the next leg down is $14, marked as the March low. If that level fails to contain pressure, the next stop to keep in mind is $12.3, followed by $11.
On the other hand, if Avax regains momentum from the current trading level, the key resistance level to watch for a test is $16.9. There’s also a resistance level at $18.2 before pushing higher to $19.47.
Key Resistance Levels: $16.9, $18.2, $19.47
Key Support Levels: $14, $12.3, $11
- Spot Price: $15.3
- 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: kviztln/123RF // Image Effects by Colorcinch
