Avalanche price might need to drop 5% to 10% before AVAX bulls eye retest of $80


  • Avalanche price shows signs of exhaustion as it approaches the $51 to $56 resistance zone.
  • The bearish divergence developed on the weekly chart forecasts a potential correction.
  • The immediate imbalance, extending from $45 to $50, is a good level for long-term buyers to accumulate.
  • Invalidation of the bullish thesis will occur on the flip of the $39 support floor into a resistance level.

Avalanche (AVAX) price has been struggling to overcome a critical resistance zone for three weeks now. Considering Bitcoin’s slowdown and sell signs, a potential correction might be due for AVAX in the short term. 

Also read: Bitcoin back above $67K as Memecoins push up SOL and AVAX

Avalanche price to provide buying opportunities

Avalanche price overcame the $40 psychological level in late December but rebalanced the $22 to $31 imbalance, allowing sidelined buyers to accumulate. As a result of this buying pressure, AVAX shot up 140% in the under two months. 

Between late December and mid-March, Avalanche's price set a higher high. However, the Relative Strength Index (RSI) and the Awesome Oscillator (AO) formed lower highs. This non-conformity is termed bearish divergence and often results in corrective moves for the underlying asset. 

In this case, Avalanche price has already shed 19% from the recent local top of $65 and is likely to shed more weight. The immediate imbalance, extending from $45 to $50, is the first accumulation zone, which is roughly 5% to 10% away from the current level of $53. 

If history repeats, a dip into this level should generate enough buying pressure to shatter through the $51 to $56 resistance zone and retest the next critical hurdle at $80. This level is the midpoint of the previous bearish market for AVAX.

Read more: Altcoins that show strength during Bitcoin price decline: JUP, SEI, AVAX, GALA and SUI

AVAX/USDT 1-week chart

AVAX/USDT 1-week chart

On the other hand, if Avalanche price continues to dip beyond the $45 to $50 imbalance, it would denote a general weakness in the market. In such a case, AVAX will encounter the weekly support level at $40. 

If there is a massive spike in selling pressure that pushes Avalanche price to flip the $40 level into a resistance level, it would invalidate the bullish thesis. Such a development could see AVAX crash 28% and tag the next key support level at $28.

Read more: Avalanche Foundation’s meme coin investments are underwater, AVAX price sees 36% weekly gains


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Convex Finance extends gains after facing short squeeze

Convex Finance extends gains after facing short squeeze

Convex Finance (CVX), the DeFi token, extends its rally to double-digit gains and raises 26% on Monday, as seen on Binance. Data from Coinglass shows large volume liquidation of short positions, to the tune of $722,000. 

More Cryptocurrencies News

XRP stuck below $0.50 while SEC abandons demand for $2 billion penalty

XRP stuck below $0.50 while SEC abandons demand for $2 billion penalty

XRP struggles to make a comeback above sticky resistance at $0.50 on Monday as traders continue to assess the legal skirmishes between blockchain firm Ripple and the US Securities and Exchange Commission (SEC).  

More Ripple News

Quant price poised for a short-term sell-off amid potential early-holder selling spree

Quant price poised for a short-term sell-off amid potential early-holder selling spree

Quant (QNT) price could have a short-term downward pressure. Data from Lookonchain suggests that an early holder has deposited 118,008 QNT tokens worth $9.78 million into the Kraken exchange.

More Cryptocurrencies News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin retesting its major resistance level

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin retesting its major resistance level

Bitcoin price is retesting its weekly resistance level of $67,147. Ethereum price finds support around $3,321, the price imbalance between $3,146 and $3,498. Ripple price faces rejection due to the key resistance level of $0.499.

More Cryptocurrencies News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Fed keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis

BTC

ETH

XRP