Avalanche’s AVAX price is finished unless this happens

  • Avalanche’s AVAX price falls back to a key Fibonacci level.
  • AVAX price is facing resistance at both the 8-day and 21-day simple moving averages.
  • Invalidating the bearish trend is a break above $27.

Avalanche’s AVAX price could endure another catastrophic drop. Being an early buyer could be problematic.

Avalanche’s AVAX price needs more bullish evidence

Avalanche’s AVAX price is showing signs of optimism amid the brutal drop investors have witnessed. On July 4, 2022, AVAX price successfully returned to a key 61.8% Fibonacci level (surrounding June’s monthly low of $13.71 and monthly high of $22.05) at $17.41. However, traders considering going long on the recent bullish price action should be aware that the 8-day and 21-day simple moving averages (SMA) are also in the same vicinity of the current AVAX price of $17.49 lie. The SMA create additional bearish resistance for bulls to clear; Furthermore, a bearish cross could result from the congestive collision of the SMAs and result in a 25% drop to $13.

AVAX price also confuses the idea of ​​caution needed in the Relative Strength Index. So far, there is no bullish divergence within the upmove that sees the behavior of the AVAX market as corrective rather than impulsive. Thus, the downtrend remains fully intact until further bullish evidence is provided. Moreover, a sell-off to the $10 price level could trigger the RSI indicator to generate the divergence or double bottom signal

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AVAX/USDT 2-day chart

The earliest invalidation of the downtrend could be a break above $27. If the bulls can clear this barrier, they can potentially rally as high as $50, resulting in a 190% surge from the current AVAX price.

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