Can AVAX price keep grinding to hold more gains for Avalanche traders?
|- Avalanche price action turns into zombie mode after the eight-day selloff.
- AVAX price counts on a double motor for support.
- Expect a continuation of the grind higher before potential violent selloff once double-support defaults.
Avalanche (AVAX) price is recovering from an uppercut that would even floor the all-time great Mohammed Ali, as AVAX traders got crushed. Luckily for them, a double layer of support trading higher by the day is there to catch any falling price action should another blow occur. AVAX price should now keep trading higher, but it will only take one big bearish element or tail risk to breach that double support and see a falling knife unfolding.
AVAX price on target to make 33% profit against 40% losses
Avalanche price has undergone quite a big selloff these past three weeks as traders took their profits since mid-August as the end of the summer rally showed its first signals. Although the move was quite substantial, with a 26% decline from the high of August to where AVAX price is trading at the time of writing, support is still very much there. That floor level contains the 55-day Simple Moving Average this is not trading alongside the trading action with intraday moves above and below it daily, together with that green ascending trend line from June 19 that is due for a third confirmation test.
AVAX price looks to withstand the turmoils of the global markets and could grind higher still, with the first target of the monthly R1 resistance level at $28. Expect to see some profit taking and a small fade once that is broken to the upside, offering room for the next leg up towards $30.87. That is the high of August, and could see some nervousness with fears of a double top rejection, but once cleared, AVAX price should reach the monthly R2 at $32.60 near the beginning of September.
AVAX/USD Daily chart
Risk to the downside for AVAX price is quite easily identified: a break of those two supportive elements. The green ascending trend line only holds one clear test for support on July 13, and could be easily broken should a bearish element materialize on top of the current already inflated tail risks. Once Avalanche price action resides below those supports, expect a quick drop towards $13.75 and the low of 2022.
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