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AVAX price needs to revisit $70 before Avalanche bulls recover losses

  • AVAX price is currently hovering below the weekly resistance barrier at $78.96, hinting at a further downtrend.
  • A sweep of the $70.32 support level is necessary for Avalanche to recover recent losses.
  • A breakdown of the immediate foothold could lead to a retest of the $64.59 barrier.

AVAX price is experiencing a lack of directional bias, leading to sideways movement. Avalanche price needs to retest a vital support level before rethinking its allegiance.

AVAX price rethinks its strategy

AVAX price is currently stuck between the $78.96 and $70.32 barriers and shows no signs of directional bias. Considering the coiling-up of Bitcoin, there is a good chance Avalanche will slide lower to collect liquidity before moving higher.

On March 7, AVAX price set up almost equal lows around $70.32, above the liquidity resting below it. The altcoin rallied, however, leaving behind sell-stops. Nevertheless, market makers are likely to take Avalanche down south first before allowing bulls to take over.

A sweep below $70.32 is key to the recovery, and would be followed by a reversal at around this level triggering a rally in AVAX price of 12% to $78.96. While the conservative scenario is limiting, an extension of the uptrend could see Avalanche retest the $86.49 hurdle, bringing the total run-up to 22%.

Although unlikely, a persistence of buying pressure could see AVAX tag the $100 psychological level. Such a move would represent a 40% gain from the current position - $75.34.

AVAX/USDT 4-hour chart

AVAX/USDT 4-hour chart

While things are looking up for AVAX price, a complete breakdown of the $70.32 support level will create a lower low, skewing the odds in the bears’ favor. In such a case, Avalanche price could slide lower and retest the $64.59 barrier, where sidelined buyers are likely to step up.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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