By Nicolash Ferreira Souza (Brazil)
Avalanche finally overpowered a descending price channel that lasted almost one month after the alt recorded its September peaks. However, technical indicators show that the crypto is might sustain losses. The MACD made a bearish cross, as the RSI displays an overbought condition, confirming the AVAX progression end.
With such cases, market players may await a correction towards the support ranging from $61.7 to $65. 7 before collecting the strength needed to support the upcoming price climb. While publishing this article, AVAX has its price at $66.58, following a 2.6% surge over the previous 24 hours.
4 Hour Chart
AVAX encountered selling pressure following its rise towards the ATH at $80 in September. A descending price channel, comparing lower lows and lower highs, dragged the altcoin down by 37%, hitting the pattern’s lower level from its all-time high.
However, the $54.4 base provided ground, and bulls pushed the coin upwards, resulting in the pattern’s breakout. Meanwhile, AVAX stayed 27% high over the past five days as bulls solidified beyond the 50% FIB retracement zone.
Also read:The overbought condition in the Relative Strength Index and MACD’s bearish cross hints show that Avalanche will retrace before its upcoming upside actions. The 38.2% and 50% Golden FIB retracement will provide short-term support as selling momentum seems to storm the markets.
At the same time, a close under $60 might see AVAX recording unpleasant plummets. Such developments will have the coin dropping to a new swing low at $44. However, the massive bullish scenario displayed by the Directional Movement Index appears to cancel the projected decline.
Keep in mind the cryptocurrency space saw corrections as Bitcoin plummeted from its recent ATH. Although the retracement, optimistic crypto analysts believe the coins drop to accumulate momentum for the incoming upside price actions.
Conclusion
After the impressive surge in the past few sessions, Avalanche (AVAX) may cool in the 50% FIB retracement before its next upsurge. The overbought case by the Relative Strength Index and a bearish cross gesture by the Moving Average Convergence Divergence supports the awaited downtrend. For now, bulls should battle to maintain AVAX above the $60 mark for a bullish strength.
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