AVAX dips below primary support, buyers worried as Avalanche could melt down to $48

  • AVAX price showed signs of a new bullish expansion phase, buy selling pressure during Wednesday’s trading created uncertainty.
  • AVAX parked directly on top of its primary support zone.
  • Failure to hold support could trigger a move to $48.

AVAX price dropped as much as 17% during the Wednesday trade session. Extreme selling pressure early in the US AM trading session pushed many cryptocurrencies into massive double-digit percentage losses. However, AVAX has recovered over half of that loss but remains below a collection of essential support zones.

AVAX price recovers most of the daily loss but is still under threat of renewed selling pressure

AVAX price action has been a source of frustration for those on the long side of the market. Since falling below the rising wedge on September 28th, AVAX continued to drop lower and lower. Feelings of excitement returned when AVAX broke out above the Cloud simultaneously with the Chikou Span close above the candlesticks, creating an Ideal Bullish Ichimoku Breakout entry. However, bulls were unable or unwilling to capitalize on bullish sentiment and technicals.

A robust collection of Ichimoku levels all exist within the $63 value area: the Tenkan-Sen, Kijun-Sen and Senkou Span A. Below those three levels, the next Ichimoku support is Senkou Span B at $48. Senkou Span B shares its support level with the 50% Fibonacci ratio and a high volume node in the volume profile. So that is likely to be a strong support zone if AVAX fails to hold $63.

AVAX/USDT Daily Ichimoku Chart

This short bias will be invalid if AVAX returns and closes at or above the $70 level. That would put the current close back above all Ichimoku levels, and the Chikou Span would be above the candlesticks and in open space.


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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Bank of America bullish comments on metaverse push Axie Infinity and Sandbox closer to breakout

Bank of America's strategist made bullish remarks about the metaverse, triggering a spike in interest in Axie Infinity and Sandbox tokens. The rices of the two metaverse tokens continue climbing with increased interest from investors. 

More Axie Infinity News

Polkadot price ready to breakout after DOT forms double bottom

Polkadot price began turning around and moving higher on November 28. It is currently resting on support after a brief pull-back, with the potential for using this floor as a launchpad higher. A resumption of the bullish impulse will provide fresh confirmation for the new uptrend.

More Polkadot News

Bitcoin Weekly Forecast: The bull and the bear case for BTC

Bitcoin price saw a recent bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. With directional bias and choppy price action, BTC is likely to experience massive volatility as the situation resolves over time. 

More Bitcoin News

Berkshire Hathaway’s Charlie Munger wants US to ban cryptos like China

Charlie Munger considers cryptocurrencies bad for people and backs China on its cryptocurrency ban.In his previous interviews, Munger has shed light on the concept of “speculative excess” and “asymmetry of wealth.” 

More Cryptocurrencies News

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!