Avalanche (AVAX) – Rekindled the dominant bearish tonePosted on Wednesday, June 29 2022 at 9:36 pm GMT+0000
Avalanche (AVAX) has dipped back beneath the 20-day simple moving average rekindling the dominant bearish tone, after a failed attempt to overstep the tough resistance barricade linking the 12th of May low and the 40-day simple moving average.
The negatively charged simple moving averages are endorsing the bearish outlook, while the oscillators are reflecting the recent increase in the negative impetus. The ROC has nudged below the zero level, and the RSI has shifted course at its equilibrium level of 50.
In the meantime, sellers’ eyes are turned towards the last bottom recorded on the 19th of June at 13.72, where any violation will boost the negative pressures sending the price to the 161.8% Fibonacci extension level of the 13.72-22.05 bullish wave at 8.57. Further lower, the sell-off will likely pick up speed towards the 227.2% Fibonacci level at 3.12.
Should the bulls retake the wheel, immediate resistance may continue to emanate from the 26th of June high at 22.05 fortified by the 40-day simple moving average. Following a decisive step beyond these obstacles, the next barricade to watch will be the 31st of May high of 29.09. Even higher, attention will turn towards the 13th of May swing high of 37.87.
To summarize, Avalanche is exhibiting a sturdy bearish bias below the simple moving averages and a decisive drop below 13.72 will empower the negative outlook. Only a jump over 22.05 could trigger some bullish developments.