Starting this week with a sell-off, Avax found support and recovered after registering a double-digit loss in a week. This brought a slight break in the bloodbath as it currently posts gains daily.
Following months of consistent price reductions, Avax appears highly bearish on the mid-term scale as it continues to flip through several key support levels weekly. The leg down took a strong toll on the bulls as they suffered along in the dip, closing last week’s trading under $18.
Yesterday, being the start of a new week, marked a painful loss for them as the price continues to roll over, but they were able to intercept the move at $14.6. This interception triggered an hourly buy and the price increase to where it trades at $17.48. The selling might resume soon.
Currently, the price is up on the day. We can anticipate an extension if the supply level increases. In the opposite direction, a further buy should facilitate more recoveries on the hourly chart before resuming bearish.
Holding yesterday’s low well could trigger a strong bounce capable of creating a double-bottom pattern on the daily chart. If that happens, Avax may witness a trend shift shortly. But considering the negative sentiments surrounding this market, there’s currently no room for such a shift at the time of writing.
Source: Tradingview
Right now, Avax’s resistance is marked at $19.85. If the demand level increases with a surge above this holding resistance, the higher levels to consider for a test would be $22.5 and $27.2.
Losing the recent $14.6 low could fuel more sell-offs in the market. The closest support level for drops would be $12.5, along with the $10 level.
Key Resistance Levels: $19.85, $22.5, $27.2
Key Support Levels: $14.6, $12.5, $10
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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