Avalanche is approaching a key support zone as bearish momentum persists. Will the bulls defend $16?
AVAX has been consolidating in a downtrend, forming lower highs and lower lows over the past month, which signals bearish momentum. As of press time, Avalanche is trading at $19, a 1.23% price drop over the past 24 hours amid low trading volume.
A look into the 1-day chart shows prevailing bearish pressure as bulls fail to hold above the $19 key resistance level. The MACD(12,26) and moving averages signal a ” strong sell,” pointing to further downside.
According to renowned analyst Ali Martinez on X (formerly Twitter), if the selling pressure continues, AVAX could find support at $16. The market is eyeing this zone as a strong support where bulls might defend, triggering a price reversal. Previously, AVAX rebounded from this level, eyeing the $20-$22 range.
What’s next for AVAX?
According to Coinglass data, the coin’s long-short ratio stands at 0.9577 (a neutral zone) while the open interest has slightly dropped by 0.16%. This indicates that the $19 zone is a key battleground for the bulls and bears.
With the bears in charge, a high buying volume would hold AVAX back above the $19 zone. However, with the market’s prevailing bearish sentiment, $16 remains AVAX’s next stop as bulls anticipate defending and attempting a price reversal. A failure to defend this support could see AVAX drop towards $15 or more in the next few days.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
