While AVAX enjoyed a rebound in confidence this summer, prices are back on key support. Analysis of the situation.
AVAX – Weekly Chart: Last Chance Support
The summer had been very beneficial for AVAX, which offered itself a rebound worthy of a dream: 128% increase in only eight weeks! But autumn has put lead in the wing of the Avalanche project.
Currently, prices are back at square one, on key support located at $14.75. This same support that had saved prices in June is now under strong pressure. With sellers who continue to lead the dance.
If this support is broken on the downside, expect a further bearish acceleration towards $9.45a low point found in July 2021…
The indicator EMD shows that sellers remain strong. Its -DI signal line (in red) is well above the +DI (in green). Reversing this trend will require buyers to show some strength. In effect, the volumes are at their lowest and the lack of enthusiasm explains this weakness for AVAX.
As a form of resistance, Weekly Tenkan always drags prices down. To give hope of a rebound, it will be necessary break it to try to return to the $23.63 zone. This is the first major resistance in the medium term.
AVAX – Daily chart: Buyers miss out
The daily chart does not yet give a real bullish signal. Many major resistances await buyers, who have been absent since this summer.
Indeed, the Ichimoku indicator signaled this sell alert, through an exit from the bottom of the price cloud, at the end of August.
Looking at the daily chart, several major resistances are easily observable. First of all the descending trendline has been blocking prices for almost three months, at the time of this writing. Watch out, because the current price construction indicates a descending triangle pattern. A continuation pattern of this downtrend. It will be confirmed by a break of the key support, at $14.75.
Also, the indicator EMD here too confirms the strength of the sellers. With the bullish move of its bearish signal line (-DI).
To give buyers a glimmer of hope, it will take break this bearish trendline upwards as well as the daily Kijun. This will initially allow you to look for the bottom of the daily cloud, located at $18.20.
We must be extremely careful on this last point. Because the general situation is not improving and no positive news is coming to fuel the market to hope for this type of bullish correction. It is necessary to wait for a lull in the rise in key ratesto relieve risky markets.
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