Avalanche (AVAX) – Exhibiting a sturdy bearish biasPosted on Tuesday, May 24 2022 at 8:52 pm GMT+0000
Avalanche (AVAX) has been struggling to climb above the Tenkan-sen line in the last couple of sessions, and odds for a continuation of the descent from the April 2nd top of 103.65 are currently very elevated.
The negatively charged Ichimoku lines are confirming the prevailing downward forces, something that is also mirrored by the oscillators. The momentum indicator turned lower again after deflecting off its zero line, while the IMI is dipping back toward the 30 oversold threshold, both promoting additional downward price action.
Amid overwhelming bearish pressures, all eyes are turned to the May 12th bottom of 22.33, where any significant penetration will see an extension to the July 2021 inside swing high of 14.39, while steeper declines are expected to challenge the 10.00 round number.
On the other hand, if buyers start to push back, immediate upside friction could arise again from the Tenkan-sen line at 31.66, before the 23.6% Fibonacci retracement level of the April 2 – May 12 downfall at 41.52 fall under the spotlights. If positive pressures strengthen further, the Kijun-sen line at 45.91 may try to delay a test of the 38.2% Fibonacci retracement level at 53.39 and the adjacent inside swing low of January 22.
In a nutshell, Avalanche has been consistently navigating south for almost two months revealing a sturdy bearish bias, and a drop below 22.33 will further strengthen the negative tendencies.