Since the November ATH, Avalanche (AVAX) sellers have led the way by keeping buying rallies in check. The liquidations of the recent symmetrical triangle pulled the alt below the seven-month trendline resistance (previous support).

The existing setup was visibly bearish as AVAX aimed to retest the 20 EMA (red). So on a longer time frame, the traders/investors should be alert before placing long bets.

Buying volumes in the coming candlesticks would mainly affect the trajectory of the alt. Should the buyers get close to the immediate support, AVAX could see a tight phase before falling further. At the time of writing, AVAX was trading at $16.25, up 4.45% in the last 24 hours.

AVAX Daily Chart

Source: TradingView, AVAX/USDT

AVAX lost more than 88% of its value since the ATH and plunged to a 10-month low on June 15. Immediate trendline resistance provided strong support for months until the symmetrical breakdown of the triangle fueled bearish efforts.

This breakdown registered more sell volumes than the recent buy orders, thus showing a bearish edge.

With price action approaching the lower band of the Bollinger Bands (BB), buyers should look for opportunities to recover from the $16 support. In that case, AVAX could be in trouble in the near future.

A convincing close below the $16 support would provide opportunities for short positions targeting in the $13.5 – $14.5 range. However, traders should carefully assess the implications of macroeconomic factors on market sentiment.

rode

Source: TradingView, AVAX/USDT

After struggling to break above the 39 resistance, the RSI fell back into oversold territory. Any close below the 30 level could trigger a retest of the 26 support.

The bearish divergence of price action with the CMF helped sellers find renewed pressure. A continued dip below zero would be a good fit for the bearish narrative.

Conclusion

Looking at the oversold values ​​on the BB and RSI, buyers would like to defend the immediate support. In the event of a sustained close below the $16 zone, AVAX could see a longer pullback towards the $13-$14 range.

Finally, the investors/traders need to keep a close eye on Bitcoin’s movement. This reading would be vital to complement these technical factors.



This post Avalanche: why AVAX traders should keep an eye out for this

was published first on https://ambcrypto.com/avalanche-why-avax-traders-must-remain-on-the-lookout-for-this/

Author

Write A Comment