Avax initiated a drop and decreased by almost 15% in the past weeks. It held the $35 level as support and remained indecisive above it. A drop from that level could slip the price back to the monthly low with a potential breakdown.
Following multiple rejections in the past weeks, Avax’s price continued to drop and remained weak on the daily chart. The bears seemed to be taking a break as volatility dropped extremely with choppy price actions.
Similarly, the bulls have shown no interest yet, and as a result, the price remained indecisive for the past three days. While that is going, the crypto looks set for another leg down. A drop below the monthly low should validate more downtrends on the daily.
From a technical standpoint, the trend is considered bearish on the daily chart. If the price recovers back above last month’s high, we can expect a massive price movement once a breakout occurs. If not, it may drop and lose momentum again.
Without any doubt, the price is expected to undergo more correction in the coming days before bouncing back for a bigger rally. So far, it has shed roughly 15% loss since it started to drop last month.
Avax’s Key Level To Watch
Now that the crypto is preparing for another drawdown, the immediate level to consider as support is the monthly low of $31.50. A dip from there may sink the price to $28 and maybe $25 on a big sell-off.
Avax is currently trading near an immediate resistance level of $37.5. If the price increases above this level, the $41.85 level marked as last week’s high would be the next resistance to watch for recovery before advancing higher to $45.95 and $49.96.
Key Resistance Levels: $37.5, $41.85, $45.95
Key Support Levels: $31.5, $28, $25
- Spot Price: $35.5
- Trend: Bearish
- Volatility: Moderate
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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