Avalanche’s AVAX find its floor before rallying back to $70
- AVAX price hits a technical bottom and finalizes its major downtrend.
- Greater than 100% rally incoming.
- Further downside risks remain a concern but are minor compared to the potential upside.
AVAX price is currently down nearly 41% for the week, which may be a blessing in disguise. Instead of traders suffering months upon months of a slow bleed, major pain has been inflicted quickly and is hopefully almost over.
AVAX price collapses but is halted at a powerful support zone
AVAX price has followed the same massive flash crash affecting the rest of the cryptocurrency market. However, the end of the downtrend and sell-off is likely here.
The $30 value area contains three of the most powerful technical support levels. $30 includes the 2021 Volume Point of Control, the 78.6% Fibonacci retracement, and the critical 261.8% Fibonacci expansion. The collection of those three levels creates the single strongest support structure for AVAX price until the $17 zone.
AVAX price hitting its bottom is the all-time low in the %B oscillator, the Relative Strength Index hitting the final oversold level in a bear market (40), and the Composite Index developing regular bearish divergence.
Additionally, AVAX price has had five consecutive weeks of rising volume while price declined – a perfect example of the maxim: ‘volume precedes price.’
AVAX/USD Weekly Ichimoku Kinko Hyo Chart
The projected high that AVAX price will hit before strong selling returns is the $70 value area which contains the weekly Tenkan-Sen, 38.2% Fibonacci retracement, and a high volume node in the 2022 Volume Profile.
Downside risks are likely limited to the $17 value area.
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
