Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.

“Even after your favorite coin is down 90%, there’s nothing stopping it from dropping another 90%” – anonymous crypto analyst on Twitter. It is true that not much reliance should be placed on things said on Twitter, especially by anonymous accounts. Still, this adage was true in the 2018 bear market and likely will be true in this cycle as well. The avalanche has fallen by almost 76% since early May.

The funny thing is that nothing is stopping the coin from losing another 40% in value. Tech support levels below $14.6 are at $9.7 and $5.1. With Bitcoin barely holding the $20k, another avalanche in the charts could be a likely scenario.

AVAX- 1-Day Chart

Source: AVAX/USDT on TradingView

As mentioned before, AVAX has long-term horizontal support levels of $14.67 and $9.69. The previous support of $23.22 held up for nearly a month, but selling pressure was far too acute. Even on lower time frames, there was no bullish bias anywhere. The USD 20 and USD 18.8 levels acted as short-term resistance levels.

AVAX’s downtrend started in late March. An increase from the $66.6 support level brought AVAX to $103.2. In April and May, sellers had control of the market and AVAX has lost 84% since the beginning of April.

For the long-term bias to turn to bullish, AVAX would need to climb past $28. In doing so, it should also hold the USD 23 level as a support.

In the shorter term, a move above $18.9 could turn the bias towards bullish.

rode

Source: AVAX/USDT on TradingView

The daily RSI stood at 30.2 to show strong bearish momentum. It has been unable to rise above 40 for almost two months. A bullish divergence was also absent.

The OBV also fell below the level it had held since February. The falling OBV suggested that the selling volume was high and the downward trend could continue unless the OBV can climb higher. The CMF has also been below -0.05 since April, with the occasional trip to zero. This meant a strong flow of capital from the market.

Conclusion

All told, the indicators showed strong bearish momentum and selling pressure. A pullback towards $20 or $28 has not yet been signaled. The market structure also remained bearish. Therefore, a session closing below $14.6 could present a shorting opportunity for Avalanche. At the same time, a move towards USD 20, combined with a hidden bearish divergence, could also present short opportunities.



This post Avalanche: On shorter time frames, a move beyond this level could turn the bias into bullish

was published first on https://ambcrypto.com/avalanche-on-shorter-timeframes-a-move-past-this-level-could-flip-bias-to-bullish/

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