Avalanche price needs to return to the mid $20 level, or more pain will ensue soon
- AVAX price has lost 40% of market value this month.
- The bears have rejected the bullish attempt to reconquer the $20 price zone.
- Invalidation of the bearish thesis is a weekly close above $24.70.
Avalanche price leaves clues that more decline is imminent. Key levels have been identified.
Avalanche price has seen better days.
Avalanche’s AVAX price has fallen 40% this month as the bears have flexed total control over the Ethereum-based gaming token. Amidst the 40% decline, the bears have managed to prompt additional cues suggesting more downslides will occur in the future.
AVAX price currently auctions at $19.85. The 40% decline enabled the bears to produce a weekly candle thatsettled below an ascending trend line, which has provided support for the Avalanche price throughout the majority of the summer. Additionally, the bears have rejected the intra-day bullish attempt to reconquer the $20 psychological level.
AVAX/USDT 1-Week Chart.
Combined, the AVAX price could be due for more pain. If market conditions persist, a 20% decline targeting the $17.50 barrier will be the next stop on the bears' path.
Invalidation of the bearish outlook is a breach and weekly close above the 21-day simple moving average currently positioned at $24.70. If the bulls can hurdle this key barrier level, they may be able to induce a rally targeting the August monthly high at $30.87. This would result in a 60% increase from the current Avalanche price.
In the following video, our analysts deep dive into the price action of Ripple, analyzing key levels of interest in the market. -FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
