Avalanche is still on the fall, losing roughly 20% within two months. The price is inching near a two-week low following a slight breakdown from a week consolidation phase. Now looking a bit calm.
The leading DeFi token by market capitalization, Avalanche, maintained a downward slope despite bouncing off the yellow support line earlier this month. A lower low and lower high pattern in play.
Yesterday, the price plunged to a low of $16 after remaining indecisive for over a week. Due to rejection at this low-price level, the price recovered quickly to where it is testing the $16.6 level. This breakdown is likely to increase more chances for upcoming bearish actions.
Adjusting to the 4-hour chart, the increase in volatility indicates that more positions are being added. If the bears continue to step into the market, their footprints are likely to become significant on the daily chart. This could cause a big sell-off to the January bullish break-up level.
But with the current shrink in volatility, which still makes the price indecisive, Avax may continue to slow down bearish actions until volume starts to troop heavily into the market.
As the buyers continued to suffer along, a strong reaction above the $15 level is likely to fuel a fresh positive rally. As it stands now, the bears have a more upper hand over the bulls.
Avax’s Key Level To Watch
While anticipating the next drops, the closest support level to keep in mind is $15.56, followed by the monthly bounce level of $14. The next support to watch out for is the January bullish break-up level of $12 and $11.
The $16.90 resistance still stands as a retest level. If the price climbs further to reclaim the monthly high of $18.3, the next resistance levels for an increase are $19.47 and $21.8 – which marks a breakout level for mid-term bullish.
Key Resistance Levels: $18.3, $19.47, $21.8
Key Support Levels: $15.56, $14, $12
- Spot Price: $16.6
- 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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