Avalanche price remains submerged, but bulls can come out on top if this happens
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- Avalanche price fell by 44% in November and has since rebounded by 10%.
- AVAX currently hovers beneath a broken support zone.
- The bulls must conquer the $14 liquidity zone to prompt a potential rally toward $16.
Avalanche price may set up for one more decline targeting the halfway point of the 2020-2021 bull run. Despite this, the bulls are showing efforts to refute the bearish stronghold. The $14 price zone is crucial for defining the next directional rally.
AVAX price is submerged
Avalanche price has yet to recoup substantial losses following the 44% decline witnessed earlier in the month. Currently, the Ethereum-based gaming token is up a mere 3% on the day, bringing the total recovery of lost value to 10%. AVAX failure to prompt a significant countertrend move could spell bad news for December.
Avalanche price currently auctions at $13.01. The bulls and bears show a tug-of-war price action on smaller time frames near the 8-day exponential and 21-day simple moving averages. Traders should be cautious as the moving indicators could produce a bearish cross signal. A bearish cross is when the slower-moving average crosses over the faster-moving average while the auctioning price stays on or below both indicators.
A bearish cross would likely catalyze a sweep-the-lows event targeting the 50% Fibonacci retracement level at $11.26. The aforementioned level is the 50% mark between an all-time low at $0.85 and an all-time high at $147. It is worth noting that the Fibonacci levels are used by calculating exponential returns in logarithmic mode on Tradingview. AVAX will decline by 16% if said price action occurs.
AVAX/USDT 1-Day Chart
Invalidation of the bearish thesis targeting $11.26 could occur with a bullish surge through the $14 liquidity zone. In doing so, the AVAX price rally towards the northern side of the November range near $16.20, resulting in a 50% increase from the current market value.
Here's how Bitcoin price moves could affect Avalanche price
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