• Avalanche has seen a bearish trend since April, with a strong downward momentum in the past week.
• The $10.47 resistance needs to be broken for the market structure to turn bullish on H4 and likely begin recovery.
• Rising demand over the past few days gives some hope, but a drop to $6.5 and lower is still possible if AVAX fails to break its resistance level.
Avalanche’s [AVAX] Bearish Outlook
Avalanche had a higher timeframe bearish structure since June, with signs of heavy selling pressure resulting in it registering a new 2023 low at $9.71. The 4-hour chart also showed that the $10.47 was an important resistance level that needs to be broken for the market structure to turn bullish on H4 and potentially signifying recovery beginning soon after that.
Rising Demand Gives Bulls Some Hope
Over the past few days there has been an increase in Open Interest and demand, which could give bulls some hope of recovery as long as AVAX can break its key resistance levels at $10.45-$10.55 area on H4 charts or above the psychological level of $10 on 1-week charts .
Shorting Opportunity For Traders?
If these critical support levels are not able to hold up against selling pressure then traders may have an opportunity for shorting AVAX, as a move below $10 could set off another decline which could measure as much as 40%.
Price Prediction for 2023-24
With such bearish sentiment in place investors should keep an eye out for further price drops below $7.5 by 2023, which would depend on how well bulls are able defend key support levels within this period of time before any potential recovery can take place beyond this year .
Disclaimer
The information presented does not constitute financial advice or investment advice, trading advice or other types of advice and is solely based on writer’s opinion only