AVAX Price Tests Three-Month Lows; Is Reversal In Offer?

AVAX price remains on tough ground falling more than 40% in the April series. The price started the series on a lower note and continued to drift lower indicating the ignorance of the AVAX buyers. The recent downswing pushed it towards a long-standing support zone formulating a make or break zone.

• AVAX price fell for the third straight session on Saturday.
• A reversal is expected in the extreme oversold market conditions as the price approaches January lows.
• But the downside risk is still intact upon a daily candlestick below $60.0.

As of writing, AVAX/USD is trading at $60.41, down 4.72% % for the day. The 24-hour trading volume of the cryptocurrency is standing at $499,944,037 as updated by the CoinMarketCap.

 AVAX price trades near an inflection point

AVAX price dropped considerably as the April session begins. After tagging the highs of $104.0 on April 2. The price booked 42% depreciation. Further, looking at the daily chart, we found AVAX has been consolidating in a short-term trading range of $106 and $60 with both sides capped. The price constructed a reliable support zone around $60.0 extending from January 22 to April 30.

As per the previous pattern, with a resurgence in the buying momentum, the price could jump back to the 50-day EMA (Exponential Moving Average) at $78.09. Furthermore, an extended buying could bring $90.0 into play.

On the flip side, if the AVAX price failed to sustain the session’s low on weekly basis, there is a strong chance of the continuation of the prevailing trend. In such a case, AVAX price could fall to the lows of $54.0 last seen in October.

Technical indicator

RSI: The Relative Strength Index (RSI) approaches the oversold zone falling from the average line. The extreme oversold market condition could result in a bounce-back in the price.

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.