AVAX Technical Analysis: Bearish Continuation Soon to Reach $50
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AVAX is the primary token of Avalanche. It is a highly-capped, rare asset that is used to pay charges, protect the platform with staking and serve as a base account for the various subnets that are created on Avalanche.
Let us move ahead to read about Avalanche technical analysis.
Past Performance of AVAX
The AVAX coin price retests the breakdown of a descending triangle in the daily chart after finding demand near the $60 mark. However, the coin price reverses from the 200-day EMA close to $72. The prices fall up to 10% in the past two days resulting in the bearish engulfing candlesticks.
AVAX Technical Analysis
The AVAX coin price faces a downfall of 40% in the past two weeks as it retraces from the 200-day EMA. Moreover, the increased trend momentum might shortly break below the $50 mark.
The crucial Exponential Moving averages show a bearish crossover of the 50 and 100-day averages in the daily chart. Moreover, the price retests the fallout of the 200-day EMA as it shows a bearish continuation.
The Momentum indicator shows a sharp rise in the slope as it approaches the zero line mark in the daily chart. However, the slope remains within the negative territory suggesting a bearish trend in action.
The Commodity Channel Index shows a bullish attempt as the slope exits the oversold zone to enter the neutral arena. However, the slope shows a reversal reflecting bears undermining the attempt.
In a nutshell, the indicators reflect the failed bullish attempt and an increased possibility of a downfall below the $50 mark.
Upcoming Trend
The AVAX coin price action shows a bearish continuation after the retest of the 200-day EMA. The coin price shows increased trend momentum as it continues to approach the $50 mark.
The price action suggests support levels at $60 and $50 below the 200-day EMA that sellers can target as the next bearish stop. And, in case of a bullish revolt, resistance levels are at $70 and $80.
At the time of writing, TradingView gives a "SELL" signal for the AVAX coin.