This month took Avalanche (AVAX) on a serious drawdown as it passed through several key levels to a brief consolidation phase for days. It is now on the verge of dropping again amid current bleeding – down 20% in two weeks.
After plunging below $20 last month, Avax continued to roll at a loss and entered this month with a bearish sentiment. It remained indecisive for some days and initiated another drop at $18, bringing the price to a monthly low of $14.7 last week.
Avax retraced briefly and consolidated for days due to an extreme drop in selling volume. No strong attempt was made by the bears to surpass that monthly low until after today. They are now trying to get back.
Currently, the price looks set up for another breakdown after staying calm for a week. The latest selling pressure could facilitate another downward movement for the DeFi leading token by market capitalization.
However, the March low could serve as a temporal checkpoint for the bears before they extend a rally to the previous bottom, as seen across most top altcoins recently.
As shown on the daily chart, the volume indicator reveals a consistent decrease in trading volume in the past months. As a result of this, over $1.9 billion has been erased from its market cap since mid-April.
Once volume starts to flow back into the asset, making the market cap increase as well, we can expect the price to rise steadily as the demand level raises. As it appears now, more bearish actions are likely to take place.
AVAX’s Key Level To Watch
The next stopover to watch for the next dip is the $14 level – marked as the March low. The lower level to keep in mind for a breakdown is $13 and $12.3.
Right now, there are no signs of recovery. In case that happens, the key resistance level to watch is $15.5. Other levels above it lie at $16.4 and $17.7.
Key Resistance Levels: $15.5, $16.4, $17.7
Key Support Levels: $14, $13, $12.3
- Spot Price: $14.8
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: moxumbic/123RF // Image Effects by Colorcinch
