After exploding by more than 5x in two months, Avax encountered resistance, remained indecisive for two days and began to fall. It appeared ready for the correctional phase following the latest dip.
From $8 some months back, Avax made an impressive run to the peak of $49.96 from a short-term perspective. It traded calmly at this peak for a few hours after failing to sustain pressure.
As expected, the rally cooled off and the price fell on the hourly timeframe. Adjusting to the daily time frame, Avax has steadily fallen for three days. It may become broader if the asset posts more losses in the next few days.
Should things get uglier in the coming day, we can expect a lower retracement to a closer support level. A 50% drop could bring the price to the low of $30 in the future
However, there’s hope for a recovery if the buyers step back in the market. If that happens, they must overcome the previous resistance level for continuation.
Despite the latest drops, it is essential to note that the trend remains bullish from a short-term perspective – up 97% in the past 30 days. But looking at the current price actions, a correctional phase seems to be in play from a technical standpoint.
Avax’s Key Level To Watch
While the price currently faces down, the closest support level to consider for drops is $39, followed by $36.58 and $33.97. A dip below these levels could bring the price to $31.57 before resuming buying.
In case of a bounce, the immediate levels of resistance for recovery are $43, $46 and $49.97. A push above $50 could activate a rally to $60 in the near term.
Key Resistance Levels: $43, $46, $49.97
Key Support Levels: $39, 36.58, $33.97
- Spot Price: $40
- 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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