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AVAX price should tank further as Avalanche price action heads toward $13

  • Avalanche price is heading lower again as the US trading session gets underway on Wednesday.
  • AVAX has bears building pressure on $14.56 in a bearish triangle setup.
  • Another 10% drop is at hand once bears advance beyond the current triangle’s base.

Avalanche (AVAX) price is continuing its decline at a slow grind as a bearish triangle has been formed on the charts – a recognizable pattern. Pressure is building again with investors on edge as plenty of tail risks exist. Expect to see a sharp leg lower once the floor in the triangle breaks at $14.56, and we could see AVAX trading near $13 very quickly.

AVAX price to undergo more pain with no turnaround nearby

Avalanche price is gearing up for another landslide victory for the bears as there is no end in sight just yet in this painful trade. Another bearish element is perceived from the charts as a bearish triangle is at hand. Another 10% drop should materialize on the back of this bearish triangle that is slowly but surely nearing its end game of a break lower.

AVAX traders will watch $14.56, which acts as the base for the bearish triangle in this process. Once that gives way, after firm support last Friday, a quick nosedive move will be next. Expect a sudden drop to $13 with the monthly S2 support nearby for support. 

AVAX/USD  4H-chart    
    

AVAX/USD  4H-chart    

However, support could still hold, and a break above the red descending trend line would be a massive bullish signal to investors and traders. In that case, expect bulls to rally higher here in a quick knee-jerk correction. Although quite far off, $16 will be in the cards with the 200-day SMA as a first big cap on the topside to test. 

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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