AVAX price exhaustion could lead to sizeable retracement, but for the better
|- AVAX price seems to be having trouble overcoming the $30.20 hurdle after multiple attempts.
- A rejection here could likely lead to an 8% to 14% retracement in the near future.
- A daily candlestick close below $26.34 without a quick recovery will trigger a bearish scenario for Avalanche.
AVAX price is in a no man’s land and depending on how the altcoin reacts to a few barriers, investors can bet on its direction. But a minor retracement in the short-term seems likely given the current market conditions.
AVAX price needs to find stable support levels
AVAX price has rallied 126% since June 19 and 39% since August 3. This impressive rally comes after the altcoin managed to get back into the $22.43 to $37.97 range that was created in May 2022.
However, the upswing has been facing issues overcoming the midpoint of this range at $30.20 since August 8. Due to the expansive move that AVAX price has undergone, a minor retracement seems likely.
Investors can expect AVAX price to retrace to the immediate support level at $26.34 or dig a little deeper and retest the $24.71 barrier. While the overall consensus on altcoins is bullish, investors can expect another attempt at overcoming the $30.20 hurdle if the bulls allow a quick recovery above $26.34.
Failing to do so will indicate that the profit-taking or the selling pressure is taking over.
AVAX/USDT 1-day chart
If the $26.34 support level flips into a resistance barrier, investors can expect AVAX price to slide to the range low at $22.43, which is likely to provide a decent amount of support. However, bears might knock the altcoin lower to fill the fair value gap or the price inefficiency present at $21.29.
Hence, a failure to recover above $26.34 could result in a 19% downswing for AVAX price.
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.