AVAX Bounces But Fails To Clear Resistance

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In Brief
  • AVAX is facing resistance at $36.5 and $45.

  • There is support at $23.70 and $13.70

  • The trend seems to still be bearish.

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The Avalanche (AVAX) price has been moving upwards since bouncing on Feb. 28.

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The failure of AVAX to break through resistance and the corrective nature of the move suggests that the low is not yet in.

Ongoing Bounce

AVAX has been decreasing since Feb. 10, when it reached a high of $60.49. The decrease continued until Feb. 28, when AVAX reached a low of $22.12. Since then, it has been moving upwards.

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Despite the ongoing increase, the token has failed to clear the $36.50 resistance area. On top of being a horizontal resistance level, this is the 0.382 Fib retracement of the entire downward movement.

Until it manages to clear it, we cannot consider the trend bullish. 

Furthermore, technical indicators are showing bullish reversal signs but are not bullish yet. The Stochastic oscillator is increasing but has yet to make a bullish cross. Also, the RSI is right at the 50 line. 

Despite these two being neutral, the MACD is bullish since it has given a bullish reversal signal.

If AVAX manages to break out, the next resistance would be found at $45.

Future Movement For AVAX 

Cryptocurrency trader @Thebull_crypto outlined an AVAX chart, stating that a breakout is forthcoming.

Despite this, the token has actually been rejected since the tweet, and the price is now moving downwards.

A look at the short-term chart shows that both upward movements look corrective. 

On the contrary, the decrease of March 20-25 looks impulsive. Therefore, the trend may actually be bearish, and the token could make another low.

If so, the token could decrease all the way to $13.70-$15.20. 

The support area is created by the 0.786 Fib retracement level and would give waves A:C a 1:0.618 ratio.

Conclusion

To conclude, the failure of AVAX to clear the $36.5 area suggests the trend is still corrective. 

Therefore, another low could be made before a trend reversal.

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate 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.

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