AVAX Technical Analysis: Higher Price Rejection Brings Sellers Back
AVAX is the primary token of Avalanche. The token is a hard-capped precious asset used to pay fees, safeguard the platform with staking and serve as a base account for the various subnets that are created on Avalanche.
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Let us move ahead to read about the Avalanche technical analysis.
Past Performance of AVAX
The AVAX coin price shows a decline of 15% in the 48 hours as it faces rejection near the $73 mark, slightly above the 200-day EMA. The downfall results in a long-wick candle-driven morning star pattern in the daily chart. Hence, the reversal pattern with higher price rejection indicates a solid pushback from the bearish powers.
AVAX Technical Analysis
The AVAX coin price approaches the $60 mark with increasing selling pressure evident by the rising intraday trading volume. Therefore, the ongoing bearish trend can reach the next support level at $53.
The crucial Exponential Moving Averages maintain a bullish alignment, but the falling slope of the 50 and 100-day EMA can shortly provide a bearish crossover. The price breaks below the 200-day EMA and retest it to continue the downfall.
The MACD Indicator shows the falling MACD and signal lines continuing a downtrend below the zero line. However, the decreasing intensity of the falling histogram increases the chances of a bullish crossover.
The Momentum Indicator shows a sideways momentum below -20%, indicating a saturation in the downtrend. However, the significant fall reflects a solid underlying bearishness.
Hence, the technical indicators showcase a solid downtrend in action, but the chances of a bullish reversal are increasing gradually. Therefore, the AVAX coin can shortly find support near $50.
Upcoming Trend
The AVAX coin price is close to the horizontal level at $60, the morning star pattern drives it lower. However, the downfall might prevent lower price rejection near $50.
Therefore, sellers can find an entry opportunity at current prices with a target of $50 or even $40 in case of a fallout. Bullish traders need to wait till the price sustains above the 200-day EMA.
At press time, the technical analysis by TradingView gives a "SELL" signal for the AVAX coin.