AVAX price could nosedive 20% as Avalanche bulls hit a ceiling
|- AVAX price attempted a recovery rally but failed to even retest a major hurdle at $22.43.
- A 12% sell-off is on the cards, but sellers could extend this crash to 20% if buyers do not seize control.
- A daily candlestick close that flips the $22.43 hurdle into a support floor will invalidate the bearish outlook for Avalanche.
AVAX price reveals that the recent bounce is facing exhaustion after flipping an immediate resistance level into a support floor. A breakdown of the aforementioned barrier could result in a steep sell-off.
AVAX price to make its move soon
AVAX price created a base at roughly $18 after a 26% sell-off in late August. Despite the bearish outlook, altcoins triggered a recovery rally, and so did Avalanche. As a result, it inflated by 18% and set a swing high at $21.18 on September 10.
This move flipped the $20.16 resistance barrier into a support floor, sending a bullish signal to Avalanche bulls and investors. However, things could fall apart for AVAX price as it attempts to break down the recently flipped support level at $20.16.
If successful, bears could trigger a 12% to revisit the August 29 swing low at $17.46 to collect the sell-stop liquidity. This stop hunt could allow market makers to knock AVAX price down to $15.74 or sweep below it, bringing the total loss from 12% to 20%.
AVAX/USDT 1-day chart
While the above outlook is bearish without a doubt, it makes logical sense, especially considering the recent run-up in Bitcoin price without any discernible retracement. Hence, if AVAX price breaks down the immediate support floor, it could trigger a sell-off.
On the other hand, things could favor the bulls if AVAX price manages to flip the $22.43 resistance level into a support floor. This development will not only invalidate the bearish outlook but could also induce confidence among buyers and manifest a run-up to $25.32.
Note:
The video attached below talks about Bitcoin price and its potential outlooks which could influence AVAX price.
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