Avax has experienced serious reductions in the last few days, but it seems to be reaching a critical support level in the daily timeframe. A strong negotiation there should determine the price movement next.
Avax has seen a series of ups and downs in the past month, although the bears have been gaining more control than expected as they continue to pull lower. So far, it has lost roughly 20% from the recent top, and at the time of writing, there are no signs of stopping bearishness.
However, the price is slowly reaching a critical support level of $35 as selling pressure drops a bit on the daily chart. This critical support level is considered where the next major direction is likely to take place.
If the bulls act upon this support by defending it well, we can anticipate a fresh increase with a double-bottom formation on the daily chart. This should fuel a strong bullish move, which may explode the price to a new high.
Otherwise, we may see a breakdown to confirm further bearish move. Such a scenario could completely wash off the late 2024 gains within a blink, painting a catastrophic loss in the short term.
Now that the bullish bias is temporarily fading in the short term due to low demand, it is important to note that the bearish dominance might get stronger amid rising supply.
Avax’s Key Level To Watch
Source: Tradingview
A break below the mentioned critical support could bring us back to $33.6 – last month’s low. The lower level to consider for more sell-offs is $30.6, followed by the $27.2 level.
Should the buyers intercept the latest move, Avax may bounce back to retake the lost $40 level along with the weekly $45 high. Surpassing this level could fuel more recoveries to $50 and potentially $55.5.
Key Resistance Levels: $40, $45, $50
Key Support Levels: $35, $30.6, $27.2
- Spot Price: $36.7
- Trend: Bearish
- Volatility: High
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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