Three reasons why Avalanche’s AVAX price is failing
- AVAX price has yet to display a bullish retaliation post-sell-off.
- Avalanche price prints multiple indecision candles on the four-day Chart.
- Invalidation of the bearish thesis is a breach above $29.
Avalanche price could fall further. Subtle cues are confounding the bearish thesis.
Avalanche price may suffer another blow
The Avalanche price, like several cryptocurrencies, shows reasons to believe in one more decline. The bulls have been unwilling to wage a battle at the current $24 price level. Instead, the Avalanche price continues to decline on the 4-day Chart as indecision and doji candles progressively print lower. The price action could indicate that bulls are holding back and would prefer to step in as support at lower levels.
Avalanche price shows bearish confluence on the Relative Strength Index and Volume Profile indicators. The RSI has failed to climb into bullish support levels on the 4-day Chart. The Volume Profile shows subtle re-entrance of the bears into the market, which could mean the battle between bulls and bears may have already been won.
AVAX/USDT 4-Day Chart
Still, nothing is set in stone for the Avalanche price yet. The bulls can reconquer the trend. The first signal worth considering will be a breach above $29. If the bulls can produce said price action, they may have a chance to rally as high as $50, resulting in a 100% increase from the current Avalanche price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
