Could AVAX price crash to $65 after breaching this vital support level
- AVAX price has sliced through a crucial support level at $83.46 and undone its gains.
- This downswing could extend to $64.59 if bulls do not make a comeback.
- A daily candlestick close above $83.46 will invalidate the bearish thesis.
AVAX price is in a tough spot but its latest directional cue will decide which camp it favors - the bulls or bears. The recent downswing has pushed it below a long-standing trend line, indicating a bearish outlook.
AVAX price at wits’ end
AVAX price has shown a considerable drop in its buying pressure since the 22% upswing between March 27 and April 2. This run-up collected the buy-stop liquidity resting above the $98 support level. However, the buyers failed to maintain the momentum, leading to a trend reversal that undid the gains since March 27 and dug deeper.
So far, AVAX price has crashed roughly 28% since its April 2 swing high at $103.71 and broke below the declining trend line connecting the swing highs since November 27, 2021. This development is bearish and could push it toward the immediate support level at $64.59.
Here, buyers have another platform to regroup and give the uptrend another chance, but a failure could allow bears to multiply and knock AVAX price to $55.32. Such a move is the key to triggering a bottom reversal pattern known as triple bottom.
AVAX/USDT 1-day chart
On the other hand, if AVAX price bounces from its current position at $75.15, there is a chance for a comeback. If buyers propel Avalanche to produce a daily candlestick close above $83.46 the bearish thesis will face invalidation.
In such a case, AVAX price could consolidate above $83.46 and make another attempt to breach the $98 resistance barrier.
Author
Akash Girimath
FXStreet
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.
