AVAX Technical Analysis: Trendline Breakout Warns A 20% Fall

Key technical points:

Past Performance of AVAX

AVAX coin price fails to sustain above the support trendline after cracking under all the supporting EMAs. The downfall starts after facing rejection from the psychological barrier of $100, resulting in a deflation of 32% last month. However, the support level of $67 acts as a pitstop in the downfall, providing a launchpad for reversal. 

Source-Tradingview

AVAX Technical Analysis 

The AVAX coin price forms a Doji candle at the $67 support level, providing chances for a reversal to retest the trendline breakout. Hence, traders must wait for closing below $67 to avoid getting trapped in a retest. 

Approaching a recent death cross, the falling trend of the crucial daily EMA influences high bearishness. Hence, the indicator projects a high possibility of a downtrend continuation. 

MACD Indicator: The MACD and signal lines maintain a diagonally bearish trend below the zero line. The MACD histograms support a bearish trend reflecting a high downtrend possibility. 

RSI Indicator:  The RSI slope shows a gradual rise in the bearish powers as it approaches the oversold boundary under the 14-day SMA influence.  

In a nutshell, the AVAX technical analysis indicates a much higher likelihood of a bearish continuation. 

Upcoming Trend 

AVAX coin price action shows a breakout rally slowly gaining bearish momentum and ready to breach the $67 support as the EMAs approach a death cross. However, the possibility of a retest remains the bearish trap threat. Hence, to avoid a trap, traders must wait for a closing below $67 to ride a dwontrend till $53.

Support Levels: $67 and $53

Resistance Levels: $75 and $83