- Avalanche price action jumps over 8% during the European trading session.
- AVAX price action sees buying as the RSI bounces off the oversold barrier.
- Expect some recovery, but not a full one, as crypto needs to repolish its image first.
Avalanche (AVAX) price action has had a beating these past two trading days and was knocked out against the canvas at the US close on Wednesday. The risks and negative sentiment that follow after the farce of Binance’s announced takeover of FTX and then subsequent backtracking will have caught the attention of the US Congress and the SEC once again. Expect another wave of regulatory crackdowns and possibly an FBI investigation into FTX as events unravel further in the coming weeks.
AVAX price got upside, but limited
Avalanche price action is primed to make at least some recovery, as bulls are scooping up the coin near $12 as a new 2022 low was printed overnight. The current recovery of 9% during the European session looks tempting to be apart of. Smart traders will rather think ahead and only trade the rally short term. The saga between Binance and FTX will have drawn attention from Washington and several oversight agencies.
AVAX price thus will face a louder and tougher call for more regulations in the US since this PR crisis comes only months after the LUNA stablecoin meltdown. Recovery is possible toward $16, with the monthly S1 support level now becoming resistance. Should it give way, the 55-day Simple Moving Average (SMA) near $17 will be key as it will act as a price cap and entry level for the bears.
AVAX/USD daily chart
From the looks of it, AVAX price action is already having difficulties continuing its recovery. The $14.56 level, which bears the lows of October, is already providing some resistance and pushback against bulls from trading higher. The risk with the US inflation numbers later today could be that inflation remains elevated and price action turns south to test the year’s low at $12.06, with a break and dip toward $10.53 at the monthly S3 support level.
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.
Recommended Content
Editors’ Picks
Ripple faces growing downside risks threatening potential return to $3
Ripple (XRP) price hovers at around $2.31 on Monday, extending its gradual drawdown from last week’s high of $2.65, as the broader cryptocurrency market swings between gains and losses amid shifting investor sentiment.
EOS uptrend falters ahead of token swap despite Vaulta’s DeFi TVL soaring to $246 million
EOS price slides on Monday to approximately $0.75, erasing a minor uptick on Sunday, while extending the drawdown from the May 10 high at around $0.99. The EOS network rebranded to Vaulta in the first quarter, paving the way for a web3 banking platform.
Bitcoin gives up weekend gains, signaling potential bull trap as momentum weakens
Bitcoin dips to around $103,000 on Monday, wiping out Sunday's gains and raising concerns of a short-term correction. Metaplanet adds 1,004 BTC to its treasury, while spot Bitcoin ETFs saw $603.74 million in net inflows last week.
Virtuals Protocol Price Forecast: VIRTUAL set to extend losses as triple top formation emerges
Virtuals Protocol (VIRTUAL) price drops over 10% at the time of writing on Monday, trading around $1.78 following a failed attempt to break above a key resistance level over the weekend.
Bitcoin: BTC stabilizes near $103,000 amid trade optimism, rising institutional demand
Bitcoin (BTC) price stabilizes at around $103,000 when writing on Friday, after facing multiple rejections at the key $105,000 resistance level throughout the week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.