- AVAX price breached its downtrend last week as it rallied 57%.
- Rejection followed by retracement is testing this bounce for legitimacy.
- The $13.86 support level will decide if the bullish outlook remains or gets invalidated.
AVAX price seems ready for a quick bounce if it produces a higher low. However, the bears have been pushing Avalanche down since June 26, creating a power struggle. Therefore, investors need to be patient to ride the next leg, be it up or down.
AVAX price at inflection point
AVAX price rallied 57% between June 19 and June 26, setting up a swing high at $22.05, coinciding with a high-time-frame resistance barrier at $21.47. Insufficient bullish momentum coupled with investors booking profits led Avalanche's market value to take a U-turn.
As a result. AVAX price has dropped 22% to where it currently stands - $17.12. While this retracement might seem bearish at first glance, it is not. Investors need to observe if this pullback produces a higher high relative to the June 22 swing low at $16.
If it does, it will indicate that the buyers are still in control and AVAX price is preparing for the next leg-up, that hopefully, breaches the $21.47 hurdle. On the other hand, if Avalanche bears continue to push the altcoin down, there is another support level at $14.75, where buyers can defend their position.
Investors looking to long AVAX price can do so at either of these levels. If bulls are indeed in control, then the next leg-up will push the altcoin back up to $21.47 or perhaps, flips it into a support floor and makes its way toward the next hurdle at $27.89.
AVAX/USDT 12-hour chart
However, if AVAX price produces a twelve-hour candlestick close below $14.75, it will invalidate the bullish thesis by producing a lower low. In such a case, investors can short AVAX price with the expectation of a 27% crash to the $10.70 support barrier.
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