Avalanche Price Analysis: Can $22 Support Halt AVAX Correction?
On July 18th, the Avalanche (AVAX) price gave a decisive breakout from the $22 resistance indicating the buyers are ready for another leg up. The ongoing retracement phase amid the falling BTC price retest the breached resistance. However, the traders should wait for a reversal sign at this potential support before entering a bullish trade.
Key points:
- The post-retest rally may surge AVAX price by 26.2%
- The $21.2 breakdown may offset the recent recovery
- The intraday trading volume in Avalanche coin is $518.2 Million, indicating a 16.4% fall.
Source- Tradingview
The AVAX/USDT pair recovery rally initiated when the price bounced back from the $13.79 low on July 19th. The run-up has reclaimed the $16 mark and quite recently the $22.1 resistance. On July 22nd, the altcoin marked a record high at $26.1 and reverted immediately, displaying long-wick rejection.
The current retracement could be caused by profit booking from short-term traders and has plunged the AVAX price by 15.3%. However, this retest phase accompanied by decreasing volume activity indicates the traders are better interested in long positions.
Furthermore, the AVAX price retests the breached resistance of $22.1, aligned with the 20-day EMA slope. This accentuates a high area of interest that could resume the revealing recovery rally.
Thus, a bounce back from $22 flipped support could drive the coin price 26.2% higher to hit the $28 mark.
While things look better on the buyers’ side, a daily candle closing below $21.2 would invalidate the bullish thesis and plunge the AVAX price back to the $16 mark.
Technical indicator
RSI indicator: the daily-RSI slope nosedived below the 20 SMA but still sustained above the midline, indicating the market sentiment is bullish. Bollinger band indicator: the coin price reverted from the indicator’s upper band suggests a normal retracement in a recovery rally. Furthermore, the midline approaching the price may replenish the bullish momentum to continue the bull run.
- Resistance levels: $28 and $32.2
- Support levels: $22 and $16
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