After a 18% Weekly Drop, Can AVAX Stop the Correction?

AVAX’s price is down over 80% from its all-time high of $147, but is it about to find a bottom?

Key support level: $28, $20

Key Resistance Level: $32, $38

AVAX’s downtrend appears to have slowed as the price finds solid support at $28. At the time of this post, the cryptocurrency is not ready to turn lower and the bulls need to break the key resistance at $32 if they are to reverse the bearish momentum.

Chart from TradingView

Technical indicators

trading volume: Trading volume skyrocketed during the May 11 crash and has remained high ever since, with buyers coming in strongly whenever the price dipped below $30 – leading to a kind of local bottom in this area for now.

RSI: The daily RSI managed to exit the oversold territory below 30 points but failed to recover much higher.

MACD: The daily MACD is bullish but is currently showing a lack of conviction on the part of buyers. The bulls need to break the key resistance to confirm this signal.

AVAXUSDT_2022-05-25_17-00-13
Chart from TradingView

bias

Alignment with AVAX is neutral. A disruption of the key planes is required to change this distortion.

Short term prediction for AVAX price

AVAX has closed the last seven weekly candles in red and is now approaching a moment where bulls may have a good chance to take over the price action and attempt a recovery. If they manage to break above $32 then Avalanche has a good chance of a recovery rally.

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TradingView cryptocurrency charts.

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