- Technical analysis has shown several reasons why the $ 20 area was a great resistance area for Avx bulls.
- A minor rebound was possible, but a lower decision had to start soon.
At the beginning of March, Avalanche (Avx) had to see a price rebound of 10%, but the downward trend was expected To continue, and it had happened.
Later, a price drop at $ 14 was foreseen In an analysis, and Avx fell at $ 15.2 per week later.
The lowering perspectives have remained in place. The demand was not strong enough to coax the avalanche with its downward trend, and the firm resistance areas were above the head.
Swing traders may want to seek short entries or stay away for the next few days.
Avalanche to maintain the downward trajectory
Source: Avx / USDT on tradingView
The November rally was fully traced on February 24. Since then, Avalanche has lost another 14% on the price table.
The volume of trading was also relatively high during the decline, highlighting intense sales pressure.
The mobile averages of 20 and 50 periods have shown a regular drop. The 20 DMAs have also acted as a dynamic resistance to price in the past two weeks. At the time of the press, the 20 DMA was $ 20.29.
The region from $ 20 to $ 21.7 formed a resistance zone, as it was a lowering control block. Any AVAX rebound would probably be verified by the sellers.
In addition, the fixed beach volume profile tool showed that the $ 20.5 zone at $ 22.1 was a high volume node, strengthening resistance resistance.
The tool was drawn from the bottom of August to the press and marked the checkpoint at $ 26.36.
The daily structure of the market was lower and the recent lower was set at $ 24.95. A daily session close above this level is necessary to move the structure of the structure. At the time of the press, such a decision seemed unlikely.
Fibonacci retrace and extension levels have shown that the level of extension of 23.6% to $ 14.46 was the next target.
Swing traders can try to sell a short-term price rebound around $ 21 and target this level as an appointment. The downward idea would be invalidated if the price could climb over $ 22.15.
Notice of non-responsibility: The information presented does not constitute financial investments, exchanges or other types of advice and is only the opinion of the writer
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