The latest bounce brought a little gain in the market, although Avax’s short-term outlook remains bearish as it shed over 20% loss from the recent top. A trend shift may occur if the current gains last long.
Avax’s trend is positioned in a downward range on the short-term scale but things are still looking good on the long-term as the overall market structure remains bullish with over 500% increase in the past year.
Looking at the market’s broad retracement, which suggests a big gain in the future, the selling is slowly reaching an oversold condition from a technical standpoint.
As we can see on the daily chart, the recent candle formation is getting smaller compared to where it started to fall in December. This indicates an exhaustion in selling due to low supply. However, an increase in the supply level may trigger more selling in the future.
Technically, the price is nearing a turning point. While the crypto is on a buy for almost three days, the pressure looks low to bring the bulls back on track. A significant increase above $40 should set the market bullish.
That said, Avax’s bearish trajectory remains intact despite the mid-week bounce. A notable surge from the current trading level will determine where it’s likely to head next.
Avax’s Key Level To Watch
Source: Tradingview
Following the three-day recovery, the immediate obstacle for buying is the $38 level. A notable push above $45 could facilitate a surge to $50 before retaking the main $55.5 resistance – where a major breakout lies.
Extending bearish actions may cause pain in the market. A break below $31.9 could plummet the price to $27.2 and maybe $24 shortly.
Key Resistance Levels: $38, $45, $50
Key Support Levels: $31.9, $27.2, $24
- Spot Price: $34.4
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/avalanche-price-analysis-prediction-january-31-avax-slowly-reaches-oversold-condition-likely-to-see-a-shift-soon/