Avalanche Price Analysis: AVAX Sellers Tease $30 Fallout; Sell or Hold?

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On May 12th, the ongoing correction in Avalanche(AVAX) price marked a new low of $23 and managed a daily candle closing above $30. Furthermore, the resulting lower price rejection indicated the demand pressure from below and halts charging bears. Moreover, a second retest to this fresh is expected to initiate a minor bullish pullback.

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Key points: 

  • The AVAX chart presents strong support $30
  • AVAX recovery needs a breakout from descending trendline
  • The intraday trading volume in the AVAX is $844 Million, indicating a 3.2% gain

AVAX/USDT ChartSource- Tradingview

On April 2nd, the Avalanche(AVAX) price reverted from its three-month high of $103.6 and triggered a new bear cycle. The downfall witnessed occasional 10-20% pullbacks and dropped to the multiple-month support of $53.6.

Furthermore, the early May sell-off accelerated the selling pressure and breached the bottom support on May 2nd. The post-retest downfall extended the correction rally by 55% and reached a new lower low of $23.55.

However, the buyers sustained the AVAX price above the $30 psychological level and a double retest to this support within a week, indicating strong demand pressure. 

Therefore, a potential rally may rechallenge the 40% high resistance of the descending trendline and the subtle bullish divergence on the RSI indicator only adds to the cause. 

Alternatively, a daily-candlestick closing below the $30 would invalidate the bullish thesis and continue the correction rally 26% lower

Technical indicator

EMAs- Since the recent bearish crossover among the 100-and-200-day EMA, the AVAX price has maintained a bearish sequence between the crucial EMAs(20, 50, 100, and 200). The expected pullback would first face resistance from 20-day EMA near $40

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RSI-  A bullish divergence at the oversold region of the daily-RSI chart reflects the overextended correction phase and the need for bullish recovery.  

  • Resistance levels- $38.3, and $53
  • Support levels- $30 and $22

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com
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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