Aaryamann Shrivastava
FXStreet
- AVAX price maintains a positive perspective despite dipping by 9.51% in the last three days.
- Avalanche is failing to flip a critical resistance into support despite hovering around it for three weeks.
- If the altcoin loses the support of $17.02, the technical outlook would worsen.
AVAX price has managed to perform phenomenally to recover the losses it faced back in November 2022. However, Avalanche has ended up imitating Bitcoin’s price action. Regardless, the altcoin is safe from any downfall, provided these conditions are met.
AVAX price from here on
AVAX price could be seen trading at $18.95 at the time of writing, down by nearly 10% in the last three days. Up until the beginning of February, Avalanche was faring well, with the price rising by 96.95% in the span of a month. But the declining value of the altcoin has got investors and traders concerned about a potential crash.
The chances of the same are low as despite following Bitcoin’s lead, AVAX price is far from a drop. This is evinced by the uptrend noted on the Parabolic Stop and Reverse (SAR), which is present below the candlesticks in the form of blue dots. Additionally, the Relative Strength Index (RSI) is also at the neutral line of 50.0. If the indicator bounces off this line, a rise in price is likely.
If this situation plays out, AVAX price would be able to breach and flip the critical resistance at $20.32 into a support floor. This would enable the altcoin to rally beyond the barrier present at $21.58 and mark a six-month high.
AVAX/USD 1-day chart
But on the off chance that the bullish expectations are squashed, and the AVAX price ends up falling through the immediate support at $18.29, a test of the critical support level at $17.20 would be on the cards. Avalanche would need to see some buying pressure to recover from here. If that does not happen and the altcoin ends up falling below it, the bullish thesis would be invalidated. This would lead to the cryptocurrency crashing by nearly 22% to test the lows of $14.91.
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