Avalanche price analysis deep in red territory
AVAX/USD pair near $22 support zone
Bears in the driving seat seek to bring more downside
Avalanche price analysis shows slight recovery in price as it settles near $22.84 level. After more than expected interest rate hike by the US Federal Reserve, the AVAX/USD pair fell from the $26.50 to touch a low of $21.35 level. Most of the bullish day trader positions have been annihilated in this quick bearish rally.
The AVAX/USD pair has since recovered from the $21 lows and is trading near $22.85 level but with a negative bias. However, the pair has seen the recovery relatively quicker compared to other cryptocurrencies which also fell in a similar fashion. As per Avalanche price analysis, the Bollinger Bands also seem to be stabilizing. It remains to be seen if the weekend brings in more pain for the AVAX/USD pair.
Avalanche price movement in the last 24 hours: Sharp fall wipes our bullish hopes
The crypto market has once again entered the bearish zone as the sharp spike down has dwindled the markets. The cryptocurrency is looking to consolidate from the lows of $21.35. However, the rising price channel is all but negated in the current downward trajectory. The Avalanche price analysis shows that the pair has broken below the 20-day exponential moving average at $23.34 level.
The hourly timeframes show that the pair is still not out of the woods. The minor bounce back is a result of extremely oversold technical indicators according to Avalanche price analysis. The large red candlestick painted on the daily chart will only aggravate selling in the pair. The pair is attempting to recoup some of the losses before going into the weekend.
AVAX/USD 4-hour chart: AVAX can break below $20 support line
The Avalanche price analysis reflects a renewed bearish zeal to break the pair below $20 support zone. It is also a psychological level which means that the pair can lose large bullish positions if not defended by the buyers.
The ascending price channel has been broken decisively after the price slip below $22.00 level. The bulls have vacated their positions in anticipation of further fall towards the lower end of the ascending price channel. The rising wedge pattern is further pushing the pair towards lower price channel boundary.
Avalanche price analysis conclusion: Weekend will only bring more downside
As the pair enters weekend, the bears will utilize low volumes to bring the price down. The ascending triangle pattern has been broken with large momentum and will not sustain any longer. The lack of any accumulation near $21.00 price level will hamper the bullish case. The technical indicator RSI is below 30 on the hourly charts and signifies further weakness.
The imminent oversold indicators will help the AVAX/USD pair stabilize near $22.00 region. However, the outlook is certainly bearish and it remains to be seen whether bears will take the price below $20.
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