Market Analysis

AVALANCHE PRICE ANALYSIS & PREDICTION (January 18) –  Calm Before The Storm: Avax Signals More Bearish But Remains Indecisive

Avax initiated a drop and decreased by almost 15% in the past weeks. It held the $35 level as support and remained indecisive above it. A drop from that level could slip the price back to the monthly low with a potential breakdown.

Following multiple rejections in the past weeks, Avax’s price continued to drop and remained weak on the daily chart. The bears seemed to be taking a break as volatility dropped extremely with choppy price actions.

Similarly, the bulls have shown no interest yet, and as a result, the price remained indecisive for the past three days. While that is going, the crypto looks set for another leg down. A drop below the monthly low should validate more downtrends on the daily.

From a technical standpoint, the trend is considered bearish on the daily chart. If the price recovers back above last month’s high, we can expect a massive price movement once a breakout occurs. If not, it may drop and lose momentum again.

Without any doubt, the price is expected to undergo more correction in the coming days before bouncing back for a bigger rally. So far, it has shed roughly 15% loss since it started to drop last month.

Avax’s Key Level To Watch

Source: Tradingview

Now that the crypto is preparing for another drawdown, the immediate level to consider as support is the monthly low of $31.50. A dip from there may sink the price to $28 and maybe $25 on a big sell-off.

Avax is currently trading near an immediate resistance level of $37.5. If the price increases above this level, the $41.85 level marked as last week’s high would be the next resistance to watch for recovery before advancing higher to $45.95 and $49.96.

Key Resistance Levels: $37.5, $41.85, $45.95

Key Support Levels: $31.5, $28, $25

  • Spot Price: $35.5
  • Trend: 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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Image Source: ivanbabydov/123RF // Image Effects by Colorcinch


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