AVAX price on trajectory to snowball 15% lower as pivotal level comes into view
|- Avalanche price breaks below supportive 55-day SMA.
- AVAX slides lower on Wednesday on its way to vital support.
- With Bitcoin sliding, AVAX could nosedive quickly below $15.
Avalanche (AVAX) price is sliding again on Wednesday as big brother Bitcoin loses ground this time. The sell-off in Bitcoin weighs on all its siblings, cousins and nephews in the crypto and altcoin space. Avalanche price is nearing a very important supportive area at $16, which is the last barrier between now and a 15% decline that would have AVAX valued sub-$15.
AVAX price has last chance of salvaging the situation before it gets critical
Avalanche price might already be in a critical spot, or it might not, but the chart is painting a clear picture that AVAX bulls are playing their end game with either a prosperous outcome or that of the hangover variety. AVAX sees its losses increasing as Bitcoin price is taking a step back this Wednesday during the late European session and is dragging other cryptos and altcoins alongside it in the descent. The question is: how long will bulls stand the pressure?
AVAX will see pressure relentlessly rising further on $16 with the 200-day Simple Moving Average (SMA) in sight. That 200-day SMA has been important on previous occasions in February and March. Once bears can pull the legs out from underneath the bulls, expect to see AVAX free-falling quickly toward $14.50 and creating a double bottom with the April low at $13.80. This will print a 15% loss.
AVAX/USD 4H-chart
The outcome from a test on that 200-day SMA could well be very binary in the sense that bulls seize control again and ramp up price action in AVAX back to $18.50. Regarding positioning, that would make sense as the Relative Strength Index (RSI) supports that case. It is already subdued and quite close to hitting the oversold marker. Expect a quick jump higher in the turnaround above the 55-day SMA at $17.50 and next $18.50 with preferably a daily close above the monthly pivot.
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