AVAX Technical Analysis: Push Back From $80 Delays A 20% Downfall
AVAX is the native token of Avalanche. The token is a hard-capped rare and limited asset that is used to pay charges, protect the platform with staking and serve as a base account for the various dApps that are created on Avalanche.
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Let us move ahead to read about AVAX technical analysis.
Past Performance of AVAX
The AVAX coin price finally ends the bearish week with a downfall of almost 30% with no green daily candle. However, the start of a new week results in a bullish reversal with a growth of more than 10% from $80 in the last 48 hours. Therefore, the reversal from the 50% Fibonacci retracement level hints at the start of a new uptrend.
AVAX Technical Analysis
The AVAX coin price action shows a bearish fallout retest of a support trendline in the daily chart. Therefore, the fallout undermines the recent growth as it becomes a retest. However, a breakout above the trendline can overcome the selling pressure to reinstate the uptrend.
The coin price manages to break above the 100-day EMA with the support of the demand zone at $80 but the price remains below the 50-day EMA. Nonetheless, the bullish alignment of crucial daily EMAs project a long uptrend in motion. Therefore, pushback from the 200-day EMA can revert the potential downfall.
The AVAX price action indicates resistance at $100 and $115 above the broken trendline. The support levels are at $65 and $55 below the 200-day EMA.
The RSI indicator at 41% shows the slope approaching the 14-day SMA with a reversal in the nearly overbought zone. However, a downtrend in the RSI slope indicates a solid selling pressure.
The Stochastic RSI indicator shows that the line between the K and D creates a bullish crossover in the zone of oversold. Thus, a possible uptrend within the K and D lines could signal a possible uptrend above $96 in AVAX coin price.
Upcoming Trend
The AVAX technical analysis shows a bullish revolt against the solid underlying bearishness. However, the price is yet to rise above the 61.80% Fibonacci retracement level at $96 in the daily chart. The breakout of $96 will provide an extra edge to bullish traders as it will also mark the end of previous retracement.
Nonetheless, the increase in underlying bearishness is evident by the downfall in the last week. Therefore, a downfall below the $80 mark will ignite a bearish trend that can reach $60.