AVAX price on trajectory to snowball 15% lower as pivotal level comes into view

Avalanche price breaks below supportive 55-day SMA.
AVAX slides lower on Wednesday on its way to vital support.
With Bitcoin sliding, AVAX could nosedive quickly below $15.

Avalanche (AVAX) price is sliding again on Wednesday as big brother Bitcoin loses ground this time. The sell-off in Bitcoin weighs on all its siblings, cousins and nephews in the crypto and altcoin space. Avalanche price is nearing a very important supportive area at $16, which is the last barrier between now and a 15% decline that would have AVAX valued sub-$15.

AVAX price has last chance of salvaging the situation before it gets critical

Avalanche price might already be in a critical spot, or it might not, but the chart is painting a clear picture that AVAX bulls are playing their end game with either a prosperous outcome or that of the hangover variety. AVAX sees its losses increasing as Bitcoin price is taking a step back this Wednesday during the late European session and is dragging other cryptos and altcoins alongside it in the descent. The question is: how long will bulls stand the pressure?

AVAX will see pressure relentlessly rising further on $16 with the 200-day Simple Moving Average (SMA) in sight. That 200-day SMA has been important on previous occasions in February and March. Once bears can pull the legs out from underneath the bulls, expect to see AVAX free-falling quickly toward $14.50 and creating a double bottom with the April low at $13.80. This will print a 15% loss.

AVAX/USD 4H-chart

The outcome from a test on that 200-day SMA could well be very binary in the sense that bulls seize control again and ramp up price action in AVAX back to $18.50. Regarding positioning, that would make sense as the Relative Strength Index (RSI) supports that case. It is already subdued and quite close to hitting the oversold marker. Expect a quick jump higher in the turnaround above the 55-day SMA at $17.50 and next $18.50 with preferably a daily close above the monthly pivot.

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.

Join Telegram