- 1 AVAX Price is making a double-top pattern after its recent rally
- 2 AVAX price made a downturn of 30 percent
The AVAX price after making a bullish cup with a handle pattern after a small consolidation broke its resistance level with a strong bullish candle and made a bull rally of 34%. This bullish rally is said to have happened because of a recent big move in the major cryptocurrency tokens near early January where the whole cryptocurrency market was trading on a bull trend after coming out of bear influence. After making a retest from the support level of around $15.00 AVAX’s price again made an uptrend of 41% although as of now it is taking resistance while making a double-top pattern.
AVAX price trading in a bear trend near the support level (Daily Timeframe)
The overall market sentiments are trading currently in the fear zone of around 44 points seeing a sharp decline of 6 percent since the last week when the market sentiments were trading in neutral levels around 50 points in the greed and fear index provided by the Alternative(dot)me. While the bears are currently overwhelming most of the major cryptocurrency platforms by 51 – 56 percent whereas in some platforms the bears are dominating even 81% of the price according to Coinglass.
Technical Analysis (On 1 Day Timeframe)
The AVAX price after making a bearish correction is currently taking support from the price of $15.00 while its next support level is around $12.50 and its current resistance level is around $17.50 which is 16% above the price while the next resistance level is around 40% above around the price $22.00
The RSI line is currently trading near the oversold levels of around 36.20 points while trading under the demand zone and the 14 SMA is proving resistance to the RSI line trading at around 40.95 points.
The AVAX’s price after making a bull rally of 40% is taking severe resistance from the price of $21.00 while also making a double top pattern. A double-top pattern is often formed on top of a trend. Here where the price tried to cross the resistance at the price of $21.00 but could not succeed although after taking a correction of 19% it tried to make a breakout one more time the AVAX price took a final rejection with a downturn of 30% breaking below the neckline with strength.
Support – $15.00 and $12.50
Resistance – $21.00 and $17.50
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.