AltcoinsCryptocurrencyDecentralized Finance (DeFi)Price Analysis

Avalanche (AVAX): Evaluating Possible Obstacles for Opening Short Positions

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.


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.

Feel free to share this content.

Related Articles


What is Annual Percentage Yield (APY) and How Does It Work in Crypto?

Introduction Annual Percentage Yield (APY) in crypto refers to the attention or...

EconomyPrice Analysis

ECB Policymakers Consider a Mild Rate Increase

Preliminary conversations indicate a shortage of enthusiasm for a subsequent hike of...

Crypto / Forex Broker ReviewsCryptocurrency

ArgoTrade Review – Your global trading partner?

What is ArgoTrade ArgoTrade currently offers online trading using CFDs via reliable...