Avalanche price preps for a devastating decline as bears aim for pain at $12.50
- AVAX price displays severely bearish signals on the volume profile indicator.
- Avalanche price has printed the largest bearish engulfing candle within the trend.
- Invalidation of the bearish thesis is a breach at $56.
Avalanche price could be setting up an explosive move to the downside aiming for targets most investors would call impossible.
Avalanche price is severely suppressed
Avalanche price displays reasons to consider a significant macro sell-off underway. The AVAX price currently trades at $30, which is the settling price of the initial sell-off on May 9. The bulls failed to print any price action of bullish significance a week since the decline.
Avalanche price also displays a future mudslide in the cards on the volume profile indicator. The classic ramping pattern has been finalized with an enormous bearish volume spike. If market conditions persist, this signal could project the AVAX price to $12.50. Lastly, the May 9 sell-off is now the largest bearish candle within the downtrend, which further confounds the idea of future losses for Avalanche investors.
AVAX/USDT 4-Day Chart
Invalidation of the bearish idea is a breach above $56. If the bulls breach this level, then consider this thesis incorrect. The bulls could then aim for $100, resulting in a 250% increase from the current AVAX price.
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.
