Switching from buying to selling in a week, Avax dipped below a crucial support line and turned weak again. While it has managed to hold above the monthly low, a further break below could lead to a bigger sell-off.
Following August’s bounce that brought positive sentiments back into the market, Avax formed a higher high and higher low pattern and managed to tap $31 in the following month. It unfortunately lost momentum.
After a week’s pullback, it found support at $24 and created a new higher low there earlier this month. The price bounced back but failed to break above the previous high due to a bearish interception at $30 last week.
That led to a serious fallout this week and the price dramatically rolled back to the monthly low, although the price has recovered a bit as it aims to retest the rising trendline that broke as support during the week.
After testing this trendline as resistance, Avax may initiate more dips in the coming week. But if the monthly low continues to provide support for the market, we may see a pushback to the recent top with a new bullish pattern (double-bottom) on the daily graph.
Despite the latest price reductions, Avax’s trend remains bullish in the short term. Losing the monthly low should confirm a bearish move.
Avax’s Key Level To Watch
The monthly $23.9 low is still providing support. If the price dips below it, Avax may navigate the $20.5 support – marked as September’s low. The next one to keep in mind is $17.3 – August’s low.
Currently, the $27 level is serving as resistance. If the price recovers above this level, it may reclaim the $29.9 resistance with a potential flip through September’s high to test the $33 resistance level.
Key Resistance Levels: $27, $ 29.9, $33
Key Support Levels: $23.9, $20.5, $17.3
- Spot Price: $25.5
- Trend: Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Image Source: alidrian/123RF // Image Effects by Colorcinch
