Avalanche’s AVAX find its floor before rallying back to $70

AVAX price is currently down nearly 41% for the week, which may be a blessing in disguise. Instead of traders suffering months upon months of a slow bleed, major pain has been inflicted quickly and is hopefully almost over.

AVAX price collapses but is halted at a powerful support zone

AVAX price has followed the same massive flash crash affecting the rest of the cryptocurrency market. However, the end of the downtrend and sell-off is likely here.

The $30 value area contains three of the most powerful technical support levels. $30 includes the 2021 Volume Point of Control, the 78.6% Fibonacci retracement, and the critical 261.8% Fibonacci expansion. The collection of those three levels creates the single strongest support structure for AVAX price until the $17 zone.

AVAX price hitting its bottom is the all-time low in the %B oscillator, the Relative Strength Index hitting the final oversold level in a bear market (40), and the Composite Index developing regular bearish divergence.

Additionally, AVAX price has had five consecutive weeks of rising volume while price declined – a perfect example of the maxim: ‘volume precedes price.’

AVAX/USD Weekly Ichimoku Kinko Hyo Chart

The projected high that AVAX price will hit before strong selling returns is the $70 value area which contains the weekly Tenkan-Sen, 38.2% Fibonacci retracement, and a high volume node in the 2022 Volume Profile.

Downside risks are likely limited to the $17 value area.