- AVAX erased its gains after the alt sliced through the critical support floor at $3.46.
- Bulls failing to launch a comeback might see this fall extending towards $64.59.
- A daily candle close beyond $3.46 will cancel Avalanche’s bearish thesis.
Avalanche has its price at a touch level by the recent directional hint will determine AVAX’s favorite camp – bears or bulls. However, the latest downward actions pushed the token beneath a long-term trend-line, suggesting a bearish picture.
Avalanche Price Actions
Avalanche price witnessed a substantial buying momentum drop since the 22% surge from 27 March to 2 April. This leg-up gathered buy-stop liquidity beyond the support floor at $98. Nevertheless, AVAX buyers could not keep the momentum, translating to trend reversals that erased gains acquired on 27 March, digging deeper.
For now, Avalanche stayed nearly 29% since the $103.71 swing high on 2 April. The bearish move saw AVAX breaking beneath the declining trend-line connecting the swing peaks since 27 November 2021. That means a pessimistic development and might push the alt to the closest support floor near $64.59.
Buyers can regroup at this foothold to attempt another uptrend, but failure might see bears multiply to knock Avalanche towards $55.32. Such a scenario is vital in catalyzing a bottom reversal setup, the triple bottom.
On the other side, the alt bouncing from the current position near $75.15 may mean comeback chances. Meanwhile, AVAX producing a daily candle close beyond $83.46 will cancel the analyzed bearish theory. That could have Avalanche consolidating beyond $83.46 before another attempt to clear the resistance barrier at $98.
For now, Avalanche endures massive bearishness after breaching the vital support at $83.46. That cleared the gates for more downtrends that might see AVAX plunging towards $65. The bulls need to launch upside comebacks to prevent this bearish move. Meanwhile, a 24hr candle close beyond the breached foothold will cancel the pessimistic case for Avalanche.
However, AVAX will depend on broad market reactions to its upcoming trends. For now, the market sustains bearishness. The global crypto market capitalization lost about 4.97% over the past 24 hours to stand at $1. 85 trillion.
Editorial credit: Ira Lichi – shutterstock.com