Looking back, Avax has shed a major loss in the past two months as it entered a crucial support zone daily. It has paused selling, but a surge from this zone should determine the next direction of the market.
The recent price recovery came as a relief for many bull traders as they hope for a potential shift in the trend. Instead, the recovery was short-lived and their hope was cut shorts with a sudden drop.
Due to this, Avax plummet and went back in a downward slope after subjecting to a sideways movement for two weeks. It has lost grip and traded back at a crucial support zone (of $17 and $20) on a daily. If this zone holds well, it may produce a bounce capable of reversing the trend.
Otherwise, it may breakdown and continue to bleed. Aside from the fact that it may lead to a huge drop, such a scenario could signal an end in the bull run from a long-term perspective. While this zone has contained pressure so far, Avax is now back at $21.
A continuous bearish suppression at this zone could subject the market to a sideways movement before deciding on the next move. In the meantime, this zone remains a pivot trading area for Avax’s next phase.
Source: Tradingview
If the $20 level fails to provide support, the $18.5 and $17 levels could be the next stop for the bears. A breakdown from there could cause a sudden dip to $15 and $12 in the near term.
Now that the market has found a temporal support, we may see a slight bounce to $24. A further push from there could send us to a resistance of $27.2 and potentially $31.9 in no time.
Key Resistance Levels: $24, $27.2, $31.9
Key Support Levels: $20, $18.5, $17.3
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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Image Source: nexusplexus/123RF // Image Effects by Colorcinch
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