Avalanche Price Prediction: A sharp decline in the making?

Avalanche price rallies towards the $32 target zone.
AVAX price has printed a subtle bearish divergence.
Invalidation of the downtrend scenario is a breach above $34.75.

Avalanche price shows a potential sell-off underway, and key levels have been identified.

Avalanche price headed south?

Avalanche price could be depicting early evidence of liquidation underway as the technicals show subtle bearish cues. AVAX price has rallied 90% since July 1st, printing a new monthly high at $30.86. The Relative Strength Index displays a subtle bearish divergence near the newfound August daily highs. Such a cue could be overlooked by traders scalping the AVAX price on smaller time frames. If the technicals are correct, a sharp decline could result from the RSI reading targeting $18.

Avalanche price currently trades at $27. As a profit-taking consolidation is beginning to tip over in the bear’s favor, sellers willing to take a risk can enter the market now as the bulls have lost support from the 8-day simple moving average. A safer entry could be to wait for a break and retest the 21-day simple moving average, which currently hovers just below $26.12.

AVAX/USDT 1-Day Chart

Using the Average True Range indicator, the bears can place their invalidation level for the bearish scenario at $34.75. If the bulls breach this level, an additional hike towards $40 could result in a 48% increase from the current AVAX price.

In the following video, our analysts deep dive into the price action of Avalanche, analyzing key levels of interest in the market. -FXStreet Team

Share: Cryptos feed

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.