AVAX Technical Analysis: Will Prices Rebound From $22 Resistance?
Table of contents
Key technical points:
Past Performance of AVAX
The recovery in the AVAX/USDT currency pair started after it reversed to the $13.79 lowest on 19 July. The rise has now reclaimed the $20 mark and, most recently, the $22.1 resistance. On July 22nd, the altcoin hit the highest level ever recorded at $26.1 and then reverted within minutes, displaying the long-wick rejection.
Source- Tradingview
AVAX Technical Analysis
The current retracement may be due to profit booking by traders with short-term contracts, reducing AVAX prices by 15.3%. But, this retest phase, coupled with a decrease in volume, indicates that traders are more in long-term positions. In addition, the AVAX price is retesting the broken resistance of $22. This could be the catalyst to restart the rebound rally.
The daily-RSI slope slid under the 14-day SMA. However, it is still above the midline, which suggests that the market is buoyant. Therefore, the momentum indicator supports the theory of recovery. Moreover, the MACD indicator showcases a sell signal with the bearish crossover of the fast and slow line. Hence, the momentum indicators project a high possibility of a price correction before the coin price could continue the bull run.
In a nutshell, the AVAX technical analysis displays a correction phase gradually gaining trend momentum.
Upcoming Trend
A bounce back from the $22 support that was flipped could propel the coin's price 26.2 percent higher and reach the $28 mark. However, although things are looking better for buyers, If a daily candle closes just below $21.2 will discredit the bullish view and send the AVAX price back down to $16.
Resistance Levels: $25 and $28
Support Levels: $20 and $16