Avalanche (AVAX) Breaks Critical SupportIs a $20 Drop Coming?
- Avalanche (AVAX) hs plungd 18.25% in wk, dropping blow $11 billion in mrkt cp.
- AVAX lost 21.74% in fiv dys, brking ky 61.8% Fiboncci support t $28.91.
- Anlysts wrn of furthr drops, with $20 s criticl lvl if $24.34 support fils.
Avalanche (AVAX) hs bn xprincing significnt downturn, losing 18.25% ovr th pst wk.This stp dclin hs pushd its mrkt cp blow $11 billion, with AVAX now trding t $27. Invstors r lft wondring whthr bullish rvrsl is in sight or if th tokn is dstind for furthr drops.
A glnc t th dily pric chrt pints grim pictur. Avalanche hs brokn down from locl support trndlin, which hd formd prt of flling-chnnl pttrn with prlll rsistnc lin. Th sitution worsnd on Fbrury 2, whn AVAX plummtd by 14.95%, cusing significnt brkdown rlly. This shrp fll wipd out th crucil support t th 61.8% Fiboncci rtrcmnt lvl, prviously holding strong t $28.91.
Th troubl bgn ftr th formtion of morning str pttrn nr $34.34. Sinc thn, Avalanche hs lost 21.74% of its mrkt vlu in just fiv dys. With ch pssing dy, th downtrnd intnsifis, rflcting th mounting brish prssur on th tokn.
Will AVAX Hold Above $24 or Slide Further?
Aftr brif post-rtst bounc from th 61.8% Fiboncci lvl, AVAX is inching dngrously clos to th 78.6% Fiboncci mrk t $24.34. Though thr ws slight intrdy rcovry, suggsting flting bullish sprk, th ovrll sntimnt rmins grim. Th downwrd trjctory sms fr from ovr.
Th Trnd Strngth Indx (TSI) dds mor wight to this brish outlook. Currntly sitting t -0.89, th TSI hs bn on stdy dclin sinc mid-Jnury. This indicts tht bullish momntum hs bn roding ovr tim. For ny rl trnd rvrsl, th TSI would nd to climb bck into positiv trritorysomthing tht hsnt occurrd yt.
Adding to th brish signls, th lowr Bollingr Bnd hs shown shrp downtick, nd th 20-dy Exponntil Moving Avrg (EMA) lin hs lso tkn noticbl fll. Ths tchnicl indictors point to continud downwrd prssur, rinforcing frs of furthr pric dclins.
Analysts See $20 as the Next Critical Level
Crypto nlyst Chart Cryptic nots tht AVAX is trying to hold th $26 support lvl ftr brifly dipping nr $24. Howvr, if this support fils, th nxt trgt could b round $22. According to th nlyst, bulls would nd to brk bov $36 to rvrs th currnt trnd.
Mnwhil, Ali Martinez, nothr prominnt crypto nlyst, highlights significnt downsid risks. On 5-minut chrt, Mrtinz obsrvd tht AVAX hd brokn out of symmtricl tringl pttrn, signling potntil for n xtndd downswing. H suggsts tht this brish brkout could push AVAX down to th psychologicl $20 mrk.
Pric nlysis indicts tht th downtrnd might brch th 78.6% Fiboncci lvl t $24.34. If tht hppns, th nxt support lvl to wtch would b round $19.55, opning th door for fll blow $20. On th flip sid, th 61.8% Fiboncci lvl t $28.91, now cting s rsistnc, rmins criticl brrir for ny upwrd movmnt.
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Read more: https://www.tronweekly.com/avax-breaks-support-is-a-20-drop-coming/
Text source: TronWeekly
