Avalanche (AVAX) Price Alert: Trendline Break Signals Potential Bearish Shift
Note: This post may contain affiliate links, and we may earn a commission (with No additional cost for you) if you make a purchase via our link. See our disclosure for more info. The crypto world is constantly changing. This content is for informational purposes only and not financial, legal, or professional advice So, please verify the info on the cryptocurrency provider’s websites.
Avalanche (AVAX) has experienced a significant price drop after breaking below a key 4-hour trendline, raising concerns about a potential bearish shift. TradingGain, a market analyst, notes this breakdown signals a change in momentum from bullish to bearish. The price is currently retesting the broken trendline; a failure to reclaim this level could trigger a deeper correction towards $21 or lower. The analyst highlights the importance of this retest, emphasizing that a successful push above the trendline could lead to a rebound. Adding to the bearish sentiment, the Relative Strength Index (RSI) is weakening, indicating declining momentum. The price action around the $22.8 to $23.0 range, a previous support level now acting as resistance, is crucial. Failure to reclaim this zone would further solidify the bearish narrative. Despite a recent 6.61% price increase and a surge in trading volume, the analyst advises caution, urging traders to observe the market's direction before making any hasty decisions, given AVAX's position at a critical juncture. The analyst's overall outlook is cautious, suggesting that the bearish trend may continue if key support levels are not reclaimed. The situation warrants close monitoring of price action and technical indicators to gauge the next significant move for AVAX. Traders are advised to exercise caution and avoid impulsive trading decisions until the market's direction becomes clearer.
(Source: https://www.newsbtc.com/analysis/avax/avalanche-after-trendline-snap/)
