AVAX Technical Analysis: A Bearish Avalanche Breaks The Triangle
The sudden bearish reversal breaks the triangle pattern resulting in a downfall below the $70 mark. Will the AVAX coin price recover before reaching the $50 mark?
The AVAX coin price fails to sustain above the short-coming support trendline resulting in the triangle pattern fallout. Hence, the bullish reversal fails, and a bearish continuation aims to test $50. Taking a defensive position, will the bulls recover before the downfall breaks below $50?
Key technical points:
Past Performance of AVAX
AVAX coin price action shows a triangle pattern breakout as the support trendline failed to undermine the bearish influence of the resistance trendline. This possibility was mentioned in our previous article. The downfall cracks below the 200-day EMA like a hot knife through butter. Currently, at $69.20, the Avalanche token may shortly continue the downfall to reach the $50 mark.
Source-Tradingview
AVAX Technical Analysis
The AVAX coin price shows the fallout trend continuation below the triangle pattern in the daily chart. Moreover, the 15% downfall in the past 24 hours indicates a boom in selling pressure.
The crucial 50 and 100-day EMAs are merged in the daily AVAX/USD chart, but the recent triangle fallout might shortly result in a bearish divergence. Moreover, the altcoin trades at a price cheaper than the 200-day EMA.
The RSI Indicator projects a downtrend slope after the recent support trendline breakout. Moreover, the slope trends lower to reach the oversold zone with no signs of bullish divergence.
The MACD indicator shows a bearish crossover of the fast and slow lines above zero. However, the falling trend of the lines is yet to break into the negative territory. The negative direction of the bearish histogram has started indicating a rise in selling pressure.
In short, the AVAX technical analysis showcases the downtrend continuation after the triangle breakout.
Upcoming Trend
The AVAX coin price projects a bearish continuation after the bearish breakout of the triangle pattern. The recent bearish engulfing candlestick marks the start of a downtrend. Hence, traders can expect the altcoin price soon to reach the $50 mark.
Support Levels: $60 and $50
Resistance Levels: $100 and $115
