See More

Avalanche (AVAX) Drops After All-Time High, Consolidates Above $80

2 mins
Updated by Ryan James
Join our Trading Community on Telegram

In Brief

  • AVAX is trading inside a descending or symmetrical triangle.
  • There is strong support at $80.
  • Technical indicators are bearish.
  • promo

Avalanche (AVAX) is at risk of falling below a crucial support level that has been in place since Nov 2021. This would indicate that the trend is bearish. AVAX has been decreasing alongside a descending resistance line since reaching an all-time high price of $147 on Nov 21. So far, the triangle has rejected the token thrice, most recently on Jan 2 (red icon). Despite the rejection and subsequent decrease, AVAX has created a strong support level at the $80 horizontal support area, which previously acted as the all-time high resistance. When combined with the descending resistance line, this would create a descending triangle, which is considered a bearish pattern. However, it is also possible that AVAX is following an ascending support line (dashed), which would create a symmetrical triangle. This is considered a neutral pattern, so both a breakout and breakdown would be possible.
AVAX Drop
Chart By TradingView

Future movement

The possibility of a downward movement is also supported by technical indicator readings, especially the MACD. The MACD is created by a short- and a long-term moving average (MA). Currently, both the signal line and the histogram are negative. This means that the short-term MA is slower than the long-term one. It is a sign often associated with bearish trends. The previous time it occurred was on Aug 2021 (green circle), when the AVAX price was close to $20. Furthermore, the RSI, which is a momentum indicator, is below 50. This is also a sign of bearish trends. If a breakdown transpires, the closest support area would be at $62. This is the 0.618 Fib retracement support level.
AVAX Resistance line
Chart By TradingView

AVAX wave count

Cryptocurrency trader @CryptoTony_ tweeted an AVAX chart, stating that if the Jan 7 low holds, it is possible that the token will continue increasing towards a new all-time high.
AVAX Count
Source: Twitter
If the correction ended with the Jan 7 lows (red line), the ensuing increase would be expected to be a five wave upward movement. However, the increase has been a three wave structure (highlighted). Therefore, it is more likely that the AVAX trend is still bearish, and the token will eventually break down.
AVAX Count
Chart By TradingView
For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.
Top crypto platforms in the US | March 2024
Coinbase Coinbase Explore →
AlgosOne AlgosOne Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

Trusted

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin-Tahiri.jpg
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
READ FULL BIO
Sponsored
Sponsored