While AVAX enjoyed a boost in confidence this summer, prices are back at key support. Analysis of the situation.
AVAX – Weekly Chart: Last Chance Support
The summer had been very beneficial for AVAX, who offered themselves a rebound worthy of a dream: 128% increase in only eight weeks! But autumn has set lead in the wing of the Avalanche project.
Currently, prices are back on the starting line, at key support located at $14.75. The same support that had saved prices in June is now under severe pressure. With salespeople continuing to lead the dance.
If this support is broken on the downside, expect one further bearish acceleration towards $9.45a low found in July 2021…
The indicator ECtHR shows that sellers remain strong. Its -DI signal line (in red) is well above +DI (in green). Reversing this trend will require buyers to show some strength. Take effect, volumes are at their lowest and the lack of enthusiasm explains this weakness for AVAX.
As a form of resistance, Weekly Tenkan always drags the prices down. To give hope for a recovery, 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 is yet to give a real bullish signal. Many major oppositions await buyers who have been absent since the summer.
In fact, the Ichimoku indicator signaled this sell warning 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. Primarily descending trend line has blocked prices for almost three months, in writing. Beware, because the current price structure indicates a descending triangle pattern. A continuation pattern of this downward trend. That will be confirmed by a break of the key support at $14.75.
Also the indicator ECtHR here, too, confirms the strength of the sellers. With the bullish movement of its bearish signal line (-DI).
To give the buyers a glimmer of hope, it is necessary breaking this bearish trend line upwards as well as the daily Kijun. This will initially allow you to look for the bottom of the daily cloud, located on $18.20.
We must be extremely careful with this last point. Because the general situation is not getting better and no positive news is coming to push the market to hope for this type of bullish correction. It is necessary to wait for a break the increase in key interest ratesto relieve risky markets.
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