January has been a significant correction phase for AVAX price. The coin price lost around 50% in a month and plummeted to $53.6 support. The current relief rally in the AVAX/USD pair has formed an inverted flag pattern, extending this downfall.
Key technical element to ponder
- The 20-day EMA line offers dynamic support to AVAX price
- The RSI slope shows an impressive recovery in the daily chart.
- The intraday trading volume in the AVAX Network coin is $1.81 Million, indicating a 20% loss.
Source- Tradingview
The last time we covered an article Avalanche coin, the AVAX price showed a relief rally to the $97 resistance. However, the sudden sell-off in the crypto market violated the 200-day EMA and 50% Fibonacci retracement, dropping the coin price to $53.
A shared support zone of $53 and 0.618 FIB level currently halts the bear attack and has triggered a retest to the 200-EMA. If the sellers could sustain the AVAX price below the $76 mark, the coin price would continue to drop lower.
The recent price jumps have brought a quick recovery in the RSI slope from the oversold zone. The slope has crossed above a resistance trendline and 14-SMA line, indicating a rising strength in coin buyers.
Bullish Opportunity Lies Above The $77.8 Mark
Source- Tradingview
The AVAX/USD pair resonates in an inverted flag pattern in the 4-hour time frame chart. This bearish continuation pattern could provide an excellent selling opportunity once the coin price fallout from the rising support trendline.
Conversely, the crypto traders can expect a reasonable recovery opportunity if the ALT price could breach the combined resistance of $77.8 and the 20-day EMA line.
The declining ADX slope shows losing selling momentum. However, a breakdown from the price pattern would initiate an upward swing.
- Resistance level- $77.8 and $91
- Support levels- $61 and $53
Disclaimer
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.
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Source: https://coingape.com/markets/avax-price-analysis-inverted-flag-pattern-threaten-further-correction-in-avalanche-coin/