Avalanche (AVAX) Price Prediction – Here comes the mudslide towards $11

Avalanche (AVAX) Price Prediction - Here comes the mudslide towards $11

In Short

  • Avalanche price has ascended against the since a weekend sell-off, but the strength of the bulls is questionable. 
  • AVAX price shows sell signals just above the recently breached 8-day exponential moving average.
  • Invalidation of the bearish thesis is a breach above $17.

Avalanche’s AVAX price may be headed for pain as the bull’s attempt to rally higher post-weekend decline shows weakness. Key levels have been defined.

AVAX price shows weakness

Avalanche price demonstrates reasons to believe in a further downtrend in the days to come. AVAX, the Ethereum-based gaming token, witnessed a 6% decline during the third weekend of October. On Monday’s opening bell, the bulls took charge and managed to recover nearly all of the weekend’s losses.

Avalanche price currently auctions at $16.14 as the bulls have produced a bowllike-ramping pattern that pattern traders would deem as undeniably bullish. Additionally, the bulls breached the 8-day exponential moving average (EMA) during Monday’s uptrend.  

AVAX USDT 4-Hour Chart
AVAX USDT 4-Hour Chart

Still, the Relative Strength Index (RSI) paints a different narrative. The RSI is at the ideal level for bears to enter the market. Compounding the bearish idea is a very obvious bearish divergence displayed between the current price and the Thursday night high at $16.35. Although the bulls have hurdled the 8-day EMA, clear sell-signal candlesticks are surfacing near the current auctioning price.

Additionally, the Volume Profile Indicator remains sparse amidst the bullish retaliation. The indicator may be a hint of a lack of bullish confidence

Failure to hold above the 8-day EMA at $15.80 will wreak havoc on the AVAX price. If the failure occurs, the bears will likely sweep the lows at $14 and may finally tag the long-anticipated liquidity levels near $10 in the coming weeks.

Invalidation of the bearish thesis is a breach of the October 10 high at $17. If the bulls manage to tag the invalidation level, a buyer’s frenzy with targets at the $20 congestion zone could occur. Such a move would result in a 24% increase from the current Avalanche price.

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Tony Montpeirous
Tony Montpeirous
Tony Monpeirous is a full time crypto trader and chart analyst at Coinmash and FXStreet. His style of trading includes, Elliot Wave, Auction Market Theory, and Classic Price Action techniques. When he is not on the screens, Tony enjoys music, cooking, and learning new skills.