- 1
AVAX price has formed a rising channel, but can soon turn bearish. - 2
The price has increased by more than 19% in a month’s duration, marking an uptrend. - 3
The volume declined with the rising price.
Avalanche formed a rising channel over a month with higher highs and higher lows, to suggest a bullish momentum. AVAX price displayed a formation of a bearish divergence, which may push the holders into a mode of panic sell off. The holders can create heavy selling pressure with AVAX exhibiting bearish signals. The projected price movement may test new supports and pick a price level to bounce back.
The Monoscope
AVAX price has formed a rising channel as it forms higher highs and higher lows. The current price is in the seller dominant region of the regression channel. The price tested the resistance near $18.05 several times, but has failed each time for the past month. Meanwhile the trading volume declined with each rise in the price, which may suggest a possible bearish outcome for AVAX in the short term.
AVAX price and volume formed a divergence, which represents bearish attributes for Avalanche. The Bollinger Bands contracted to display declining volatility and a contained movement. A flat laying OBV suggests the market to remain neutral, until either of the forces take charge to influence the market.
The horizontal movement in AVAX price, marks a consolidation phase for Avalanche. The CMF rose steadily to display the residual bullish momentum, which may soon turn bearish as hinted by the divergence. The MACD converges and records descending buyer bars, to suggest declining buyer interest in AVAX. The RSI moved sideways to suggest a neutral market which can mirror seller sentiments for the bearish trends.
The Microscope
In the four hour time frame, price actions displayed bears hunting for the dipping prices. The consolidation in the price saw an uptick, indicating prices temporarily entered the demand zone. The CMF dropped to the negative zone, but sharply shot to match the uptick in prices. The MACD converged and recorded declining seller bars to begin recording the bear hunters making purchases. The RSI rose to 50-range and suggested a temporary rise in buyer interest. The short term indicators show a temporary improvement in AVAX price action.
Conclusion
Avalanche displayed bearish attributes in the daily time frame, whereas the shorter time frame showed buyers buying the dipped prices. The rising channel may soon form a bearish trend and mark a down trend. The holders can watch AVAX near support $15.40.
Technical levels
Support levels: $15.40 and $13.00
Resistance levels: $18.05 and $19.75
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/04/10/avax-price-prediction-avalanche-diverges-but-turns-out-bearish/