Following the mid-month surge that led to a false breakout last week, Avax fell back into a range and continued to show signs of weakness. It is currently looking for key support to initiate a buy on the daily chart.
Bouncing off the key $29 level in April, Avax has witnessed a lot of fluctuation and has remained in a tight trading range for almost six weeks. This came after halting a month’s bearish correction from $65.
From a technical perspective, it is still maintaining a neutral-bearish mode on the higher timeframe while deciding on the next direction.
However, the price broke slightly out of its range mode during last week’s trading, but it saw a rejection under $42 and dropped steadily to a weekly low of $35.3 – trapping the bulls. The price is now up due to a 2% daily gain.
If we consider the daily market structure, Avax is still looking for a solid ground level as it continued to shed losses over the past week. we can expect more losses until it finds a key support. Currently, the bears are in control.
The $30 and $40 levels remain a crucial breakpoint range to watch for the next major rally. A break on either of these price levels would determine where it is likely to head next.
Avax’s Key Level To Watch
Should Avax locate solid ground, the immediate resistance to keep in mind is $40 and $41.8. Breaking through those levels could activate a surge to $45.2 and $50 in the future.
While the price is down over the past week, the immediate support level to keep in mind is $34. Below it lies the $31.4 level, followed by last month’s support of $29.3.
Key Resistance Levels: $40, $45.2, $50
Key Support Levels: $34, $31.4, $29.3
- Spot Price: $36.6
- 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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