Cryptocurrency

For Avalanche [AVAX], next area of support lies at this Fib retracement level

Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation.

Avalanche carried out effectively available in the market over the previous two weeks, though it did shed practically 40% from 11 June to 19 June. The costs slumped as soon as once more after they have been unable to push previous the $21.5 mark.

Bitcoin additionally ran right into a wave of promoting in latest hours. Therefore, bears may have the higher hand on each BTC in addition to AVAX charts over the next day or two.

AVAX- 1 Hour Chart

Source: AVAX/USDT on TradingView

Avalanche noticed a surge upward from $13.71 to $22.05 up to now two weeks, and a set of Fibonacci retracement ranges have been drawn based mostly on this transfer. The previous two days of buying and selling noticed the 38.2% retracement level at $18.86 function support. A bounce from this level took AVAX to $20.5, however a short-term downtrend gave the impression to be in play already.

Bitcoin was additionally unable to defend the $20.2k level, so additional lows within the coming hours cannot be counted out.

The next area of support for AVAX lies at $16.9, the 61.8% retracement level. The $17.3-$17.2 area may additionally supply some support to the worth on the best way down.

Rationale

Avalanche fizzles lower down the price charts as the bears take control

Source: AVAX/USDT on TradingView

On the hourly chart, the RSI has been struggling to remain bullish over the previous few days. It fell beneath the impartial 50 line. Its makes an attempt to push again above the impartial 50 mark have been halted at 60. Furthermore, the RSI slipped beneath the 40 mark as effectively to point sturdy bearish stress.

At the identical time, the Parabolic SAR gave a promote sign behind AVAX. The A/D line was additionally sloping downward, to point promoting quantity has been dominant over the previous week.

Conclusion

The mixture of the bearish momentum and heightened promoting quantity over the previous few days instructed that AVAX may see an additional draw back. Even although the $18 area was a support zone, Bitcoin confirmed weak point on the charts. This meant that Avalanche may additionally face promoting stress over the next few days.

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