After witnessing a small recovery earlier this week, Avax resumed drop yesterday and showed signs of weakness. Although its macro-bullish trajectory remains intact, but there’s no enough buying volume.
Avax’s daily outlook remains weak following a series of drag downs since the start of the month, although the market sentiment is still considered bullish from the long-term perspective.
Considering last week’s sharp rejection at the $33 low, which marks a 50% correction from where the market initiated drops earlier this month, the price recovered slightly but is now looking weak after rejecting $42.
A continuous price drop may cause a broader correction to last month’s break-out level to provide a huge discount. Failure to bounce back from there may result in a serious loss until it finds firm support.
But looking at the recent setup from a technical standpoint, Avax may resume bullish anytime soon. A double-bottom pattern may form above last week’s low. If that plays out, we can a fresh increase in the market.
Towards the upside, the monthly high may pose a little threat. A clear break above this level could fuel another surge amid this bull cycle. As it stands, there’s still hope for the bulls.
Avax’s Key Level To Watch
Source: Tradingview
Should the bulls fail to defend last week’s low well, the price could break through last week’s $33.6 low to the $29.9 level. Lower support levels to watch for a test are $27 and $23.9.
A rebound from the current trading level could propel recovery to the $42 resistance. The higher levels to consider for a surge is $48.1, followed by $55.5.
Key Resistance Levels: $42, $48.1, $55.5
Key Support Levels: $33.6, $29.9, $23.9
- Spot Price: $38.3
- Trend: Bullish
- 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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