Avalanche (Avax) is preparing for a major price movement after locating support a few days ago. It looks weak right now, but there’s hope for bullish once volumes troops into the market.
For the past week, Avax has been trading at an average price of $17 after registering several losses in the past week. The price is still looking weak, with no clear indication for recovery.
During the mid-month reversal, which came suddenly after Avax touched $21, the price quickly rolled back and later found support above $16. This price level provided a discount for buying but the bulls are yet to show up.
As shown on the daily chart, the ascending support line has continued to suppress sell actions and at the same time provided support once again. A drop below this line could fuel a serious price fall.
The price is building up for another massive gain. But the ongoing consolidation phase seems to be holding the potential rally on the daily chart. Buying volume is low at the moment.
If an upsurge occurs, Avax is expected to see a nice recovery in the next couple of days. However, it will have to cross a crucial supply zone to confirm a mid-term bullish. It remains bearish-neutral for now.
AVAX’s Key Level To Watch
The primary resistance level for an upsurge lies at $19.47. After that, it will have to conquer the $21.8 level, right in the supply zone (marked orange). A breakout from there should see the price through to $24 and potentially $26.
There’s no sign of bearish actions at the moment. The closest support level to watch is $16.9, followed by $15.56 and $14 in case of more dips.
Key Resistance Levels: $18.3, $19.47, $21.8
Key Support Levels: $16.9, $15.56, $14
- Spot Price: $17.2
- Trend: Bearish
- Volatility: Low
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
