Avax saw a small recovery this month but appeared back in a downward range after rejecting a key resistance level last week. Following a huge loss over the past week, it is now trading near the monthly low.
This month’s trading has been a period of relief in the mid-term selling but following the latest price deductions, which indicates another potential crackdown, things might get worse in the next few days.
Looking at the setup from where it initiated drops at $33 last week, Avax is attempting to close the monthly trade on a bearish note. And if that comes into play, we may see a huge sell-off in the upcoming month.
So far, it has registered over 15% losses in a week with no signs of stopping yet. If the market continues to turn red daily, the asset may revisit the monthly low by the end of this week.
In fact, the price is now trading back under the January low that acted as yearly support before breaking lower earlier this month. As we can see, the price is on the verge of crashing again.
Invalidating all these bearish indicators, the bulls must intercept the latest bearish actions with a strong buy. If they succeed, we can expect a comeback with a double-bottom formation to the top. But as of now, the trend is still in favour of the bears.
Avax’s Key Level To Watch
While it gathers liquidity, the potential drop level to keep in mind is $24. If the price drops below this level, the next key support to watch is $22. A breakdown from there could dip us to $18.9 – last November’s low.
Should the market regain strength, the immediate barrier levels for Avax would be the $30 and $33 resistance. If the price scales through, higher resistance levels for buying would be $37.2 and $40.
Key Resistance Levels: $30, $33, $37.2.
Key Support Levels: $25, $22, $18.9.
- Spot Price: $27.1
- 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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