Avalanche Price Analysis: A sweep of the summertime lows

Avalanche Price Analysis a sweep of the summertime lows

Disclaimer: The opinion expressed in this article is opinion only and should not be taken as financial advice. Coinmash has no involvement with any assets discussed and urges everyone to do their own research before making any financial decisions.

  • Avalanche price has lost support from the 8-day and 21-day simple moving averages.
  • AVAX price has also breached the 61.8% Fibonacci level with an uptick in volume.
  • Invalidation of the bearish thesis is a closing candle above $20.68.

Avalanche price shows reasons to believe that a sweep-the-lows event could occur. Key levels have been identified.

Avalanche points south

Avalanche price is starting the first trading week of September on a bad foot. Throughout the month, the AVAX price has been consolidating within a downtrend near the mid $18 zone. A Fibonacci retracement tool surrounding the entirety of the summertime uptrend suggests the consolidation was merely a 61.8% retracement level. The bear’s failure to close below the $18.75 zone was an optimistic signal.

On June 6th, the bears managed to disbar the optimism as they breached the 61.8% FIB and forged a daily settle at $18.20. The breach of the fundamental FIB level was catalyzed earlier in the day, as the bulls were rejected at the 50% FIB marked $20.61 Both the 8-day and 21-day simple moving averages failed to provide support. At the same time, an influx of bearish transactions poured in on the Volume Profile Indicator. Consequently, AVAX lost 10% of its market value in just one day.

ava-usd chart
AVAX USD

When combining these factors, AVAX, the Ethereum-based digital gaming token, could show early signs of a sweep-the-lows event targeting $13.79. If the bearish thesis is correct, the bulls may avoid stepping in until a capitulation near the $10 occurs. Such a move would result in a 40% decline from the current Avalanche price. 

Invalidation of the bearish thesis is a closing candle above the 50% fib level marked $20.68. If the bulls can hurdle this barrier, they could induce a 30% rally targeting $23.

Disclaimer
All articles published on Coinmash are strictly for informational purposes only. Any action that is taken from reading content published on this website is done at your own risk. 

About the Author
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.