Avalanche price endured a devastating decline during the second trading week of November. After breaching new monthly lows, the bulls have jumped into the market, causing a 25% retaliation rally. Key levels have been defined to gauge who will come out in control of Avalanche’s future price action.
AVAX price in make or beak
Avalanche price has seen better days as the Ethereum-based gaming token fell by 40% Since November 2. As volume remained sparse during the penny-from-Eiffel-style decline, side-lined bulls immediately took advantage of the opportunity, causing a 25% spike in just three days.
Avalanche price now auctions at $14.94. The declining move still shows sparse volume than the previous downtrend surge in the spring of 2022, which suggests the bears could be; losing steam. However, the Relative Strength Index (RSI) shows the recent decline breaching oversold territories on nearly all time frames until the weekly.
Considering this key piece of evidence, a pullback could occur n the short-term, but one more decline may be due to bringing the weekly and monthly price levels in sync with the lower time frames.
In summary, Avalanche’s price may be due to one more daily decline. Traders may want to practice healthier risk management techniques as the market could be subject to increased volatility. The next bearish targets lie at $12 and potentially the July 2021 lows near $10.
Invalidation of the bearish thesis could arise if the bulls breach the swing high at $21.40. If the level is breached, AVAX could re-route north in the short term and rally as high as $30. Such a move would result in a 100% increase from the current Avalanche price.