Rising Channel Fallout Teases 28% Fall in AVAX

With the bear cycle cracking below the support trendline, the sellers plan a downfall below the $70 mark. Moreover, the retest of the bearish breakout brings an entry point for sellers. However, will the AVAX buyers step in at the horizontal level, or a clean bearish cut will continue the downfall. Thus, should you keep holding to surpass the downfall, or is it a time to sell?

Key points: 

• The post-retest fall may tumble the AVXA price by 28%
• The 50 and 100-day DMA give a bearish crossover.
• The intraday trading volume in the AVAX is $541.5 Million, indicating a 4.5% gain.

  Source- Tradingview

The AVAX/USDT price chart shows a bullish failure to surpass the resistance confluence of the psychological barrier of $100 and the ascending trendline. This reversal put an end to the previous bull cycle of 45% within two weeks.

The downfall cracks under multiple support levels, crucial EMAs, and the rising channel support. The increasing selling pressure strikes below the support trendline and hangs tight at the $70 horizontal level.

The reversal at the horizontal level retests the bearish breakout of the channel pattern. Hence, a post-retest reversal can initiate with daily candle closing below the $70 mark.

The probability of price sustaining above the $70 mark decreases as the broader market shows correction. Hence, a downfall continuation will hit the $52 mark if sellers break $60.

In the unlikely event of a bullish reversal, an upside move back to $80 within the expanding channel. 

Technical indicator

EMAs- The downtrend in the EMAs intensifies with the 50 and 100 DMA bearish crossover. Moreover, the 50 DMA offers dynamic resistance to AVAX price.

RSI- the RSI (35) slope creeping lower into the nearly oversold region shows a gradual rise in underlying bearishness.

Resistance levels- $78.8, and $100

Support levels- $67 and $52

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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