• Avalanche price slips below an ascending channel, breaking a two-month uptrend.
  • Bulls must arrest the bearish correction immediately or risk losses to $25.00 and $21.00.
  • Investors believe Avalanche price is in a buy zone but lacks a catalyst to sustain an ascending parallel channel.

Avalanche price grinds to a halt, breaking a two-month trend within an ascending parallel channel. Despite breaking above $30.00, AVAX failed to close the gap to $40.00. Initially, higher support at $28.00 mitigated the bears’ influence on the price. However, Avalanche price retreated to exchange hands at $26.22 amid growing risks of a further decline to $25.00 and $21.00, respectively.

Avalanche price shifts gears as declines linger

Odds start to flip against Avalanche price after it brushes shoulders with resistance at $30.00. Bulls fearlessly battle to keep the trend north but are likely to have been overwhelmed by investors’ profit-taking activities. Besides, the Parabolic SAR moves above the price, thus tipping the scales further on the bearish side.

Avalanche price

AVAX/USD daily chart

With support at $28.00 already broken, the focus is on subsequent anchors at $25.00 and $21.00. Reinforcing the higher level is the 100-day Simple Moving Average (SMA). Trading below this area, and by extension, the 50-day SMA could push Avalanche price to explore the buyer congestion at $21.00.

The Stochastic oscillator on the same daily chart adds credence to the pessimistic outlook as it sharply descends beneath the midline. Avalanche price’s ongoing pullback is unlikely to be aborted owing to a bearish divergence formed by the Stochastic oscillator.

AVAXUSD

AVAX/USD four-hour chart

A sell signal presented by the Super Trend indicator on the four-hour chart could thin the chances of an Avalanche price recovery in the short term. This index overlays the chart like a moving average but incorporates the Average True Range (ATR) to gauge the volatility. AVAX will keep exploring downhill levels if the Super Trend indicator stays above the price.

AVAX

Avalanche Weighted Average

Although technical factors appear to be working against Avalanche price, investors believe this is the time to get on board. Santiment’s Weighted Sentiment holds at -0.3270, down from 0.0507 last week.

As elucidated in the chart, readings above the mean line suggest AVAX is becoming overvalued, hence the tendency to pull back as investors book profits. On the contrary, movement below the same line indicates undervaluation, which generally implies time to buy.

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin price: Watchout for 30% decline in Bitcoin price, according to this indicator

Bitcoin price: Watchout for 30% decline in Bitcoin price, according to this indicator

Bitcoin price surpassed the key psychological barrier at $19,000 and sustained above this level. American businessman and author Robert Kiyosaki believes that it is a buying opportunity for BTC.

More Bitcoin News

Dogecoin Price Prediction: DOGE to revisit $0.65 to rebalance inefficiency

Dogecoin Price Prediction: DOGE to revisit $0.65 to rebalance inefficiency

Dogecoin price underwent a tight consolidation between September 28 and 30, which eventually resulted in an explosive move up that collected the buy-stop liquidity resting above the September 27 swing high.

More Dogecoin News

Litecoin price set for a profitable week in a battered quarter

Litecoin price set for a profitable week in a battered quarter

Litecoin (LTC) price is set to jump higher this week as markets see bulls storming out of the gate this Monday morning. After a very volatile two weeks where the world seemed to be on fire again and the apocalypse was near.

More Litecoin News

Terra LUNA Classic price could crash 60% despite burn announcement and Coinbase, Robinhood listing rumors

Terra LUNA Classic price could crash 60% despite burn announcement and Coinbase, Robinhood listing rumors

LUNA Classic (LUNC) is the new shitcoin and has overtaken Shiba Inu's popularity, becoming a retail favorite. After Binance announced the LUNC burn program on September 26, the altcoin surged 66% and is currently hovering above another stable support level. 

More Terra News

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin price has developed a bullish divergence with RSI, hinting at more upside. Despite the optimistic technicals, investors should expect volatile swings before the end of the third quarter of 2022. 

Read full analysis

BTC

ETH

XRP