- Avalanche price sees Tuesday and Wednesday bouncing off the sloping side.
- AVAX already confirmed the base of the triangle twice.
- Expect to see a bearish breakout that could lead AVAX price to print below $11.
Avalanche (AVAX) sees traders licking their wounds after the alt-currency fulfilled its name by sliding over 30% last week. Although the price action might be trading in more calm waters, the prospect does not look too tempting for any upswings or recoveries. While markets are focused on Genesis as the next casualty in the FTX debacle, technically, AVAX is stuck in a pattern that can only point to more losses in the near future.
AVAX is ready for the next step lower
Avalanche price action is currently keeping its head above water, although dark clouds are forming again above cryptocurrencies. The next casualty set to file for bankruptcy is the crypto service provider Genesis, which has halted withdrawals. The event is keeping the current debate going as to whether crypto holders can file for reclaiming some funds or legally have lost their investments.
As Capitol Hill is looking at more regulatory crackdowns and Treasury Secretary Yellen loudly advocating for more controls, cryptocurrencies are still in an identity crisis that puts big question marks on which direction this industry will evolve.
AVAX price action is caught in a bearish triangle with two confirmed tests against the sloping side. On the base of the triangle, support held around $12.08, and the pattern already had one downside test. Expect to see the triangle completed by next week, with price action breaking below the base and looking for room near $11, with the monthly S3 support coming in at $10.51.
AVAX/USD daily chart
The fact that the bearish triangle has had only one firm test on its base level could point to a sharp bounce on the second test. That could even result in a breakout above the red descending trend line and that same tilted side of the bearish triangle. In that breakout, a short squeeze could unfold where bears are being stopped out of their positions, with bulls trying to hit $16 at the monthly S1 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 Price Prediction: Whale accumulation sparks hope as rising exchange reserves signal caution
XRP sustains mid-week recovery as XRP/BTC flashes golden cross for the first time since 2017. Large volume holders increase XRP exposure, indicating rising demand and investor confidence.

Pi Network Price Forecast: PI eyes $0.66 as whale activity surges
Pi Network (PI) declines by nearly 4% on Friday, trading at $0.79 at press time. The technical outlook suggests a downward move ahead as the short-term recovery concludes with a trendline breakdown.

Bitcoin Weekly Forecast: BTC enters full price-discovery mode after seven straight weeks of gains
Bitcoin price stabilizes around $111,000 on Friday after reaching a new all-time high of $111,900 this week. Corporate accumulation, institutional demand, signs of easing regulations and fiscal woes in the US have fueled BTC’s rally.

Jupiter Price Forecast: JUP eyes $0.82 as Fluid backs Jupiter's upcoming lending protocol
Jupiter exchanges announced the upcoming launch of Jupiter Lend, powered by Fluid, on Solana this summer. With the announcement of Jupiter Lend, the JUP token surged 16% in the last 24 hours.

Bitcoin: BTC enters full price-discovery mode after seven straight weeks of gains
Bitcoin (BTC) price stabilizes near $111,000 on Friday after reaching a new all-time high of $111,900 this week. BTC enters an uncharted territory as a perfect storm of corporate accumulation, institutional demand, signs of easing regulation and increasing concerns among investors about debt sustainability in the United States (US) have fueled bullish momentum.