Avalanche (AVAX) Shows Optimism But Is This A Price Reversal?
May 22 2022 - 10:00PM
NEWSBTC
Avalanche (AVAX) has displayed recovery on its chart. Over the last
24 hours, the altcoin brought home 4.8% gain. Although, there has
been a considerable daily gain, AVAX is trading underneath its
long-standing price floor. It is difficult for investors to look at
just the daily gain as a good enough reason to buy the coin at the
moment. Technical for the coin hasn’t suggested strong bullishness
which might suggest that AVAX could be a good buy at the time of
writing. Avalanche (AVAX) has lost 8% of its market value in the
last week. This forced many investors to liquidate the asset and
leave. Since, AVAX broke below its long term support area, this
could act as an important red flag for the investors. The next
solid area of support for AVAX was at $20. The coin traded around
the current price level previously in the month of August, a year
ago. Avalanche Price Analysis: One Day Chart Avalanche (AVAX) was
exchanging hands at $31 at the time of writing. The altcoin has
been laterally trading at that price mark for nearly a week now. It
revisited this price mark last year, however, back then the coin
was on an uptrend. Immediate resistance for the coin stood at $40
as established previously. A fall below the current price level
could send AVAX near the $20 support mark. Failing to settle near
the $20 mark could bring AVAX anywhere between the $12 and $9
support level. Technical Analysis The altcoin continues to depict
weakness on its chart. The technical outlook seems bearish because
buyers are nowhere to be seen in the market. As the coin revisited
the August, last year’s price level, AVAX remained under the grasps
of the sellers in the market. According to the Relative Strength
Index, the indicator was bordering the oversold mark. Until and
unless, RSI manages to move above the half-line, it is too early to
call this price action a reversal. Going by the Directional
Movement Index that reads the price direction, bears are in
control. The -DI line was above the +DI mark signifying
bearishness. The Average Directional Index line (red) was near the
50-mark, this reading meant that price action was strong with less
signs of a reversal. Suggested Reading | Avalanche Crumbles More
Than 16% As Crypto Landslide Continues On the one day chart, AVAX’s
technical pointed towards a possible change in price direction at
the time of writing. Moving Average Convergence Diverge aka MACD,
displayed a green signal bar above the half-line. A green signal
bar above the half-line might mean a buy signal, if continued buy
signals are witnessed it may mean a change in price momentum.
Parabolic SAR also depicted a dot beneath the price candles, this
means a change in price direction. If more dots are seen beneath
the candlesticks over the upcoming trading sessions then AVAX might
stage a recovery on its chart. Suggested Reading | Cardano (ADA)
Grapples At $0.524; Bullish Trajectory Coming
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