The past month marked Avax’s biggest drop since it started to lose momentum in December. Losing over 70% of its valuation so far, it tested a year low today but has seen a slight bounce.
Avax’s bearish trend has continued to expand monthly due to a steady reduction. Looking at the recent setup, bigger drops lie ahead for the asset as it now signaled a mid-term downtrend.
As we can see on the daily chart, things have become uglier this week as the price dipped to a yearly low of $15.2 earlier today. Rejecting this low, it has recovered slightly to $17.4 at the time of writing. Bearish actions will likely resume shortly.
If not, we can expect more recoveries in the coming hours. This could bring a temporal relief in the bearish rally before releasing pressure. The key retest point to watch for such a recovery is the $20 level that broke down during last week’s drops.
While there are currently no signs of a reversal in the market, the bulls will likely suffer more losses in the coming days. That could put the market in a more bearish condition as the price rolls over to the 2023 trading zone.
With the look of things, it is important to note that Avax’s bears will likely gain more control in the future, even if the bulls show up. Bouncing slightly off the current low, it has seen a 5% recovery in the past hours.
Source: Tradingview
A recovery above the immediate $19.42 resistance could bring a sigh of relief in the market. While bearish actions may resume, higher resistance levels to consider for a recovery are $22.5 and $27.2 on a short term.
Holding the $15.2 level as support, a further collapse could plunge the price to a low of $112.5 and potentially $10 by the end of the month.
Key Resistance Levels: $19.42, $22.5, $27.2
Key Support Levels: $15.2, $12.5, $10
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
Core Foundation has just announced a new partnership with Z Protocol, and it’s already getting…
Binance Wallet is quietly stepping into one of crypto’s fastest-growing sectors, prediction markets. According to…
As concerns around quantum computing and crypto security continue to build, Changpeng Zhao is stepping…
Bitmine Immersion Technologies, led by Tom Lee, is continuing to build aggressively on its Ethereum…
Something interesting just played out within the Ethereum space, and it didn’t take long before…
It’s becoming more obvious by the day that Ethereum is not slowing down anytime soon,…