Since it bounced off a year low a week ago, Avax has remained stuck in a consolidation due to low volatility. While looking indecisive, a surge would determine where it will likely head next.
Avax’s bearish trajectory remains intact on the daily chart with no signs of reversal yet. Although it has seen a small lift since the price plunged to a year low last week. This brought a little relief in the market and is now trading calmly on the day.
This calm might lead to another storm, and from the look of things, the bears will likely step back soon as other large-cap altcoins are already posting losses. Even though they return, they must retake the recent yearly low before considering an extension from a mid-term perspective.
Many traders and investors are still hopeful of a bullish shift. But taking a look at the market structure, Avax has signalled a mid-term bearish move from a technical standpoint. The recent breakdown to a year low validates an end in the long-term bullish if the price continues to crash.
Although bearish speculations and sentiments may change due to market uncertainty. If that happens, the bulls must retake the yearly high before we can consider a trend shift. For now, the bears are still in charge. A breakdown from the current consolidation phase could cause more storms in the market.
Source: Tradingview
Anticipating such a storm, the $15.27 level is a key support to watch for a test. Breaking it could plunge the price to a new yearly low of $12.5 and potentially $10 in the near term.
Towards the upsides, the $19.85 level has suppressed buying. If the price breaks away from the consolidation phase, the resistance level above is $22.5, followed by $27.2.
Key Resistance Levels: $19.85, $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.
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