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

AVAX price attempted a recovery rally but failed to even retest a major hurdle at $22.43.
A 12% sell-off is on the cards, but sellers could extend this crash to 20% if buyers do not seize control.
A daily candlestick close that flips the $22.43 hurdle into a support floor will invalidate the bearish outlook for Avalanche.

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.

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.