- Avalanche Price fell 16% on a previous week and eroded previous gains.
- AVAX price dropped below 50 and 200 day EMA.
- Avalanche crypto price rejects $20.00 and formed bearish candle.
Avalanche Price fell 16% on previous week due to sell off in the all overall crypto currency market. AVAX price witnessed profit booking from the supply zone and returned back to the lower range of consolidation.
Avalanche price tried multiple times to break the $20.00 hurdle but got rejected. It shows bears are active on the higher levels and $20.00 will act as a strong hurdle in the coming months. The price dropped below the 50 and 200 day EMA which showcase positional trend is still in the downward direction. However, the EMA is sloping sideways indicates prices are likely to trade in wide range consolidation.
Avalanche Price is trading at 17.88 with an intraday rise of 1.42%. The 24 hour volume to market cap ratio at 0.0364. The pair of AVAX/BTC is trading at 0.0006087 with an intraday decline of -2.28%. The chart structure of Avalanche with BTC pair is in a downtrend and trading near to the yearly lows. It shows low correlation with the USDT pair.
At the mid of March, Avalanche price took support at $14.00 and formed a bullish hammer candle. Later price gained positive momentum and began to rise by forming higher highs. During, the recovery prices consolidated for a few weeks in the narrow range between $16.00 to $18.00 and formed a short term base.
Will Avalanche price break $16.00 or rebound?
Avalanche price attempted to break the higher range and expand upside but it got sharp rejection. However, the downfall seems to be losing momentum near $16.00 shows responsive buyers are getting active. If the overall market sentiment turns bullish then it may positively affect the AVAX prices and we might see a rebound.
Moreover, Till AVAX price is sustaining above $16.00 the probability of upside reversal is high. On the other hand, If the price dropped below $16.00 then it bears may try to drag it down toward the previous lows. The technical analysis suggests, Avalanche Price is bulls grip. Any Short term correction will have a high probability of bouncing back from lower levels.
AVAX price: Technical Outlook
AVAX price corrected 20% approx from the recent swing high and formed a bearish candle on a weekly timeframe. The technical indicators like MACD had generated a negative crossover but the curve is reversing sideways indicating prices likely to consolidate. The RSI at 50 denotes neutral territory and equal level of tug of war between buyers and sellers.
Conclusion
Avalanche Price fell 16% in the previous week and witnessed profit booking from the higher levels. AVAX price is near to the demand and overall market sentiment is also improving. Therefore, the downside seems to be limited. AVAX price is in bull grip and any short term correction will have a high probability of bouncing back from lower levels.
Technical levels
Resistance levels : $20.00 and $23.00
Support levels : $16.00 and $14.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.