Avalanche’s price decreases significantly in the past hours after retesting last month’s support area as resistance on Tuesday. It encountered a rejection there and rolled over with an 8% loss.
The tussle for dominance between the bulls and bears has caused a quick swing of high and low since the start of the week. Their reactions have triggered a mixed signal and bias for Avax as the next actual direction looks indecisive.
Last week, the cryptocurrency initiated a buy and marked a 7-day high at $18 this week. This high happens to be February’s breakdown area, but due to a sudden rejection, the price fell to minor support of $15.5.
While it hovers around that support for the past few hours, buyers are trying to step back into motion. But their attempts need to be stronger. A notable surge above the weekly high could give them an upper hand.
A continuous decline, especially below last week’s rebound level, will activate another bearish scenario that could last up to $10 in the coming weeks. However, paying attention to the recent bounce on the long descending trendline is important.
Looking at the setup from a technical perspective, Avax is expected to resume the early-year positive actions in the next few days. For now, it remains bearish from a long-term perspective.
AVAX’s Key Level To Watch
An increase from the current holding support should push the price quickly to $16.9 and $18. On the way up, the next resistance level to remember is $19.47 and potentially $21.8 before breaking out of the structure.
Inversely, a decrease could send the price to last week’s rebound level of $14 before breaking lower. The potential support level to watch is $12.
Key Resistance Levels: $16.9, $19.47, $21.8
Key Support Levels: $15.56, $14, $12
- Spot Price: $15.7
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Image Source: inueng/123RF // Image Effects by Colorcinch
Source: https://nulltx.com/avalanche-price-analysis-prediction-mar-16th-avax-drops-8-to-support-but-bulls-hope-to-step-back/