AVAX Technical Analysis: Selling Pressure Building Up with $12.85 and $12.35 Support Levels

Avalanche is a blockchain platform developed using a groundbreaking consensus protocol and powered by smart contracts. It executes cryptocurrency transactions at high speed, supports the Ethereum development toolkit, and allows a large number of miners and developers to effectively use the Avalanche app building platform. AVAX is the prime governance token of this ecosystem, and below is the technical analysis for the same.

Past Performance

On Jun 14, 2021, AVAX opened at $14.75. On Jun 20, 2021, AVAX closed at $13.97. Thus, in the past week, the AVAX price has decreased by roughly 5%. In the last 24 hours, AVAX has traded between $12.84-$14.14.

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Day-Ahead and Tomorrow

Currently, AVAX is trading at $13.24. The price has decreased from the day’s opening price of $13.97. Thus, the market seems bearish.

The MACD and signal lines are negative. Thus, the overall market momentum is bearish. However, a bullish crossover by the MACD line over the signal line has occurred. Hence, we can expect an intermittent price rise amidst an overall negative trend.

Currently, the RSI indicator is at 34% and is inching closer to the ‘oversold’ territory. It faced rejection at 28% and rose to the current level. Hence, selling pressures are very high. Heavy offloading of crypto will push the AVAX price further down.

Besides, the OBV indicator has fallen steeply. Thus, selling volumes are much higher than buying volumes. High selling activity will exert downward pressure on the AVAX price.

In short, all three oscillators have given bearish signals. But, we can expect temporary price rises as market corrective action.

AVAX Technical Analysis

Currently, the price is below the Fibonacci pivot point of $13.65. It may soon fall below the first Fibonacci pivot support level of $13.15. If the bears remain strong till day close, the price may fall below the subsequent support levels of $12.85 and $12.35, respectively, as well.

The price has tested and fallen below the 23.6% FIB retracement level of $13.15. The price may soon fall below the 23.6% FIB extension level of $12.53 as well. Thus, as of now, the bears are strong. Hence, the price downtrend is likely to continue tomorrow as well.