Avalanche (AVAX) Risks Breaking Down from Long-Term Support
Avalanche (AVAX) is at risk of breaking down from a long-term horizontal support area that has been in place for 938 days. If this happens, it could have significant bearish implications for the price, potentially causing a 50% drop.
Main Breakdowns:
- The Avalanche price has fallen under a descending resistance line since reaching an all-time high of $147 in November 2021.
- The price has bounced at the $11.50 horizontal support level twice, creating a long lower wick, which is a sign of buying pressure.
- AVAX has failed to initiate any upward movement and is trading slightly above the $11.50 support area.
- The weekly RSI provides a bearish reading, indicating a potential bearish trend.
- The daily timeframe technical analysis also provides a bearish reading, with the rejection from the $14.50 horizontal area and the subsequent decrease.
Hot Take: The future price scenario for AVAX is likely a breakdown from the long-term support, leading to a 50% drop. However, a strong bounce at the $11.50 support area could result in a 25% increase to the next resistance at $14.50.
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