Since Avax switched its bearish correction to a sideways movement in April, trading has remained in a tight range – looking for a breakpoint. Once it finds that breakpoint, we can expect a massive liquidity run.
Amid low trading volatility, the last three weeks have been rough for Avax as it continued to shed daily loss and has yet to find solid ground to foot a fresh increase.
However, it has found a temporal support above $30 during this week’s drops but whether it will hold this time or not is yet to be assured. Notwithstanding, this support has been instrumental to Avax’s recovery since the trend was subjected to range in April.
If the market bounces off it again, we may see the price back at $40 (resistance) in the next few weeks. While this price level served as the high of the range, the mentioned temporal support is considered low.
A close look at the current market structure shows that the price is likely to break away from this tight range soon. A breakdown should validate a head and shoulder pattern in continuation of the short-term bearish move initiated from $65 in March. We may see the price dip to $15.
For a breakup, last month’s high remains an important level to keep in mind. A successful surge through it should restore bulls’ hope and at the same time confirm a classical double-bottom pattern for a strong buy.
Avax’s Key Level To Watch
While the price is still down, a lower price level should be considered. A dip below April’s $29.3 low could facilitate a drop to $25 and $22 to confirm a breakdown.
In the range, Avax is holding resistance at $34, $37.2 and $40 for the past weeks. It must reclaim all these resistances before we can see a break through the $41.8 resistance to $45.2.
Key Resistance Levels: $34, $37.2, $40
Key Support Levels: $29.3, $25, $22
- Spot Price: $32.6
- Trend: Neutral-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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