AVAX price could nosedive 20% as Avalanche bulls hit a ceiling

AVAX price reveals that the recent bounce is facing exhaustion after flipping an immediate resistance level into a support floor. A breakdown of the aforementioned barrier could result in a steep sell-off. 

AVAX price to make its move soon

AVAX price created a base at roughly $18 after a 26% sell-off in late August. Despite the bearish outlook, altcoins triggered a recovery rally, and so did Avalanche. As a result, it inflated by 18% and set a swing high at $21.18 on September 10.

This move flipped the $20.16 resistance barrier into a support floor, sending a bullish signal to Avalanche bulls and investors. However, things could fall apart for AVAX price as it attempts to break down the recently flipped support level at $20.16. 

If successful, bears could trigger a 12% to revisit the August 29 swing low at $17.46 to collect the sell-stop liquidity. This stop hunt could allow market makers to knock AVAX price down to $15.74 or sweep below it, bringing the total loss from 12% to 20%.

AVAX/USDT 1-day chart

While the above outlook is bearish without a doubt, it makes logical sense, especially considering the recent run-up in Bitcoin price without any discernible retracement. Hence, if AVAX price breaks down the immediate support floor, it could trigger a sell-off.

On the other hand, things could favor the bulls if AVAX price manages to flip the $22.43 resistance level into a support floor. This development will not only invalidate the bearish outlook but could also induce confidence among buyers and manifest a run-up to $25.32.

Note:

The video attached below talks about Bitcoin price and its potential outlooks which could influence AVAX price.