• AVAX price has crashed 62% in the last month, denoting the bearish state of the crypto markets.
  • A minor recovery off the $14.75 support level is possible if Avalanche bulls decide to give it a try.
  • A daily candlestick close below the $14.75 barrier will lead to a 27% crash to $10.70. 

AVAX price tried resisting the bearish pressure but was unsuccessful considering last month’s returns. Regardless, Avalanche price is retesting a stable high-time-frame support level, suggesting that a recovery could be underway.

AVAX price tries to bounce back

AVAX price crashed 67% in a week between May 5 and May 12 during the initial fallout of the Terra-UST empire. After this crash, Avalanche continued to shed 64% of its market value in the next month or so.

The second nosedive pushed AVAX price to flip the $21.47 support level into a resistance barrier and even tagged the next one at $14.75. This move, while extremely bearish, was completed in the form of lower lows and lower highs.  

Interestingly, during this period, the Relative Strength Index (RSI) produced consistently higher lows. This setup is termed bullish divergence and often results in a spike in the underlying asset’s market value. In this case, investors can expect the AVAX price to bounce and recover.

Additionally, this bullish divergence is happening around the $14.75 support level, which adds credence to the recovery thesis. Moreover, the bears tried to knock over the said foothold six times over the past week and were unsuccessful, which also suggests that the sidelined buyers have been accumulating, absorbing the selling pressure.

Hence, investors can expect AVAX price to kick-start a recovery rally to the June 16 swing high at $18.68. If this level is cleared, a retest of the $21.47 hurdle seems likely.

AVAX/USDT 1-day chart

AVAX/USDT 1-day chart

On the other hand, if AVAX price produces a daily candlestick close below the $14.75 barrier, it will flip this support into a resistance level. Such a development will lead to a 27% crash to the next stable support level at $10.70.

 


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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high

Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines. 

More Cryptocurrencies News
TON set to launch synthetic Bitcoin to boost its DeFi solutions

TON set to launch synthetic Bitcoin to boost its DeFi solutions

TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.

More Ton News
Maker Price Forecast: MKR could stage 40% rally

Maker Price Forecast: MKR could stage 40% rally

MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.

More MakerDAO News
USDT market cap crosses $120 billion as stablecoins continue their uptrend

USDT market cap crosses $120 billion as stablecoins continue their uptrend

The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.

More USDT News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP