Avalanche (AVAX) – Sellers aiming to power the short-term bearish outlookPosted on Wednesday, June 1 2022 at 9:20 pm GMT+0000
Avalanche’s (AVAX) negative bearing has been rekindled after the last positive thrust from the fresh 9-month low of 21.30 faltered in the vicinity of the 30.00 mark. The negative alignment of the exponential moving averages suggests that the intensity of the downward trend is intact.
The short-term oscillators are currently displaying discouraging signals, suggesting further negative price action. The TSI dropped below its moving average and into the negative territory, while the momentum indicator is stretching its negative movement below its equilibrium level.
The price is currently heading towards the 22.30-21.30 key zone molded by the 12th and 27th of May lows. Any significant penetration here will accelerate the decline initially towards the 161.8% Fibonacci golden number at 16.50. Another extension lower could stretch towards the 227.2% Fibonacci level at 11.41.
Alternatively, if the bulls regain control and step above the falling 20- and 55-period exponential moving averages, initial resistance will be encountered at the recent peak of 29.08. In the event the price lifts beyond this barricade, it will advance towards the 37.86 top recorded on May 13th. Further higher, the rally will speed up towards the May 10th high at 50.33.
To summarize, Avalanche’s most recent recovery attempt proved short-lived, with the price inching back below the moving averages. A break below 21.30 will power the short-term bearish outlook, while a price hike beyond the 29.08 high would be required to trigger some positive developments.