• AVAX price slides below the bearish rising wedge pattern, warning of a deep retracement.
  • The standard Coinbase pump and dump behavior weigh on short-term bullish action.
  • Sellers eye the $54 level for a short target; bulls look for support.

AVAX price has been on a tear recently, easily outperforming all of its peers. As a result, the downside pressure seen in the broader cryptocurrency of -50% to -70% decreases in September is foreign to AVAX. Instead, AVAX has more than double from the September 1st open.

AVAX price pulls back and drops below a significant bearish pattern

AVAX price has been the envy of bullish traders, rallying over 106% from the September open. However, a rising wedge has formed, signaling a deep corrective move ahead. There was some hope that the Coinbase listing announced on September 29th would propel AVAX back into the wedge and eliminate any bearish momentum, but the lower trendline of the wedge held as resistance.

The Coinbase listing, while bullish from a fundamental viewpoint, has almost always resulted in a pump and dump price action behavior. AVAX price was the definition of ‘priced in’ when it came to the announcement, with early buyers now eyeing the opportunity to take profit. Short sellers will target the confluence zone of support at $54, where the Kijun-Sen and 38.2% Fibonacci retracement exist.

AVAX/USDT Daily Ichimoku Chart

Buyers will need to close AVAX price above the Tenkan-Sen and ultimately return to inside the rising wedge. Then, they must continue the momentum higher to breakout above the rising wedge. If they can complete that scenario, then all of the short-term bearish outlooks will be invalidated.


Like this article? Help us with some feedback by answering this survey:


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin is showing rising correlation with the S&P 500

Bitcoin is showing rising correlation with the S&P 500

Bitcoin and the crypto market have been in an uptrend since Wednesday following the Federal Reserve's decision to cut interest rates by 50 basis points. Bitcoin is up nearly 3% in the past 24 hours, rising briefly above the $63,000 level for the first time in three weeks.

More Bitcoin News
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.

More Ethereum News
Consensys case against SEC over Ethereum dismissed by Texas court

Consensys case against SEC over Ethereum dismissed by Texas court

Consensys announced dismissal of a case it filed against the SEC in April about the agency's alleged actions against Ethereum. Judge Reed O'Connor of the Northern District of Texas dismissed the case on Thursday. Consensys claims that the court failed to examine the "merits" of its claim against the SEC.

More Cryptocurrencies News
XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV

XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV

Ripple (XRP) gained 2.3% since the start of the week. The altcoin’s gains are likely powered by key market movers that include Ripple USD stablecoin, Grayscale XRP Trust performance and the demand for the altcoin among institutional investors. 

More Ripple News
Bitcoin: On the road to $60,000

Bitcoin: On the road to $60,000

Bitcoin price retested and bounced off from the daily support level of $56,000 this week. US spot Bitcoin ETFs posted $140.7 million in inflows until Thursday and on-chain data supports a bullish outlook.

Read full analysis
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

BTC

ETH

XRP