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Vikram
Jun 16, 2022
by Vikram

AVAX Technical Analysis: Supply Dump Discounts AVAX Under $20

AVAX Technical Analysis
AVAX prices fall drastically this year and crack under $20, reflecting a massive supply dump warning a dip to the $10 mark.
Key technical points:

  • The market price has increased 14.34% over the past 24 hours.

  • The price action shows a bull cycling gaining momentum within the falling channel.

  • The 24-hour trading volume of Avalanche is $1 Billion, indicating a hike of 36%.

    • Past Performance of AVAX

    AVAX prices show a massive fall in the market value over the past few months, reflecting a strong bearish grip over the trend. The freefalling prices form a descending channel pattern after the fallout of $30 in the daily chart. The bearish channel accounts for depreciation of almost 60% to reach the $15 mark. However, the buyers resurface at the confluence of the support trendline and the $15 demand zone resulting in a lower price rejection.

    TradingView Chart

    Source- Tradingview

    AVAX Technical Analysis 

    The lower price rejection near the support confluence drives the AVAX prices 15% higher and forms a morning star pattern. However, the recent daily candle shows a bearish influence, cutting 2% of market value and eyes to undermine the reversal pattern. The daily-RSI slope shows a reversal from the oversold zone but struggles to surpass the 14-day SMA line. Moreover, the bullish divergence is present in the falling channel, teasing a potential rise to beat the resistance trendline.

    The MACD indicator displays the fast and slow lines regain the bullish alignment after the recent merger, avoiding a bearish crossover. Moreover, the bullish histograms resurfacing reflect a resurgence in buying pressure. Hence, the technical indicators reflect a growth in underlying bullishness, which supports the bullish reversal hypothesis of price action analysis. In a nutshell, the AVAX technical analysis displays the possibility of a bullish reversal challenging the resistance trendline.

    Upcoming Trend

    Suppose the buying pressure grows over the day to sabotage the bearish influence in the daily candle; we will have a bullish week ahead for AVAX. The bullish reversal can drive the market value higher by 15% higher to surpass the $20 mark.

    Resistance Levels: $20 and $21.5

    Support Levels: $15 and $12

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    AVAX Technical Analysis: Supply Dump Discounts AVAX Under $20
    Vikram
    Vikram is a technical analyst with several years of experience in the crypto market & Indian Equity and F&O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

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