After a short retracement, Avax resumed bearish and continued to show signs of weakness. While the volatility appears low this week, it is likely to resume pressure as soon as the selling volume increases.
Avax’s overall market outlook is still strongly bearish on the monthly scale as it continued to maintain a lower low and lower high pattern.
As seen on the daily chart, this pattern is well captured in a descending channel with no sign of reversal at the time of writing. However, market sentiment might change soon as the price slowly nears an oversold zone.
Following the last retracement phase that ended after testing the upper boundary of a four-month channel in late August, it initiated drops and continued to show signs of weakness on the daily graph. Things have slowed down a bit this week due to a shrink in the trading volatility.
It seems to be gathering momentum at the moment. An expansion of this drop could plunge the price to the lower boundary of the channel, where another retracement is likely to take place. Holding above the previous monthly low could trigger a rebound with a double-bottom formation.
If that comes into play, we can anticipate a channel break-up capable of reversing the trend. For now, Avax appears weak while deciding on the next major drop.
Avax’s Key Level To Watch
Source: Tradingview
The $20.5 level has contained bearish pressure this week. If it breaks, the next key support level to watch is $17.3 – August’s low. A sell-off from there may dip the price to $15 and potentially $12 to test the lower boundary of the channel.
If a bounce occurs, Avax may encounter a hidden resistance at $24 before breaking through the channel to tap the $28 resistance – August’s high. Levels to watch above this resistance are $33 and $37.2.
Key Resistance Levels: $24, $28, $33
Key Support Levels: $20.5, $17.3, $15
- Spot Price: $21.4
- 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
