Avalanche fell beneath its 200 Exponential Moving Average after several attempts to overcome the hurdle at $30 during mid-August sessions. The pursuit for new lows saw the token outlining a 2-week trend-line resistance. Meantime, bulls might aim to restrict the latest volatile break during the upcoming sessions. While publishing this news, AVAX traded at $20.1, dropping 2.95% within the past 24 hours.
Avalanche 4Hr Timeframe
Avalanche’s previous bullish run slowed near the $30 mark following impressive gains from July lows. The subsequent revival within the past two weeks noted a bearish pennant during this period. As the 2-week trend-line resistance crashed with bearish pennant’s apex territory, AVAX saw an anticipated breakdown that catalyzed a double-digit drop over the past 72 hours.
Meanwhile, the 20-Exponential Moving Average and the 50-EMA looked south following a death crossover with the 200-Exponential Moving Average. As sellers dominated the short-term trend, they may target strengthening the 2-week trend-line resistance.
However, buyers have ensured the baseline at $19.7 for the past three weeks. So, a possible bounce-back from this foothold might open the road for Avalanche’s short-term uptrend in the upcoming sessions. Such developments would have potential targets within $21 – $23. Then, southbound Exponential Moving Averages might pose recovery hurdles before fueling bearish tendencies.
Reasoning
The RSI (Relative Strength Index) displayed a single-sided bearish superiority as the indicator dipped into the oversold region. A possible reversal from the lows might position Avalanche for a near-term revival. Moreover, the A/D (Accumulation/Distribution) formed higher troughs as it revealed bullish divergences within Avalanche’s price.
Such higher low streaks might reaffirm ease in selling momentum. Nevertheless, buyers should wait for a possible bullish cross on the Moving Average Convergence Divergence lines for massive revival possibilities.
Final Thought
Considering the $19.7 3-week support plus the oversold Relative Strength Index and A/D bullish divergence, Avalanche buyers would target a retest of the 20-50 Exponential Moving Average in the upcoming days. Any closing beneath $19.7 would suggest a bullish invalidation. Targets would remain as mentioned above. Lastly, investors should analyze broader sentiment and on-chain activity for profitable action.
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