Avalanche Price Analysis: After a 18% Weekly Drop, Can AVAX Stop the Correction?

AVAX’s price has dropped over 80% since setting the all-time high at $147, but is it close to finding a bottom?

Key Support level: $28, $20

Key Resistance level: $32, $38

AVAX’s downtrend appears to have slowed down with the price finding solid support at $28. At the time of this post, the cryptocurrency is unwilling to go lower and the bulls will have to break the key resistance at $32 if they want to turn around the bearish momentum.

Chart by TradingView

Technical Indicators

Trading Volume: The trading volume spiked during the crash on May 11th and since then, it has remained high with buyers coming in strong whenever the price falls under $30 – creating some sort of a local bottom around that area for the time being.

RSI: The daily RSI has managed to leave the oversold area at under 30 points, but failed to rally much higher.

MACD: The daily MACD is bullish, but shows a lack of conviction from buyers at this time. The bulls will have to break the key resistance to validate this signal.

Chart by TradingView

Bias

The bias on AVAX is neutral. A break of the key levels is needed to change this bias.

Short-Term Prediction for AVAX Price

AVAX has closed the past seven weekly candles in red and is now approaching a moment when bulls may have a good chance to take over the price action and attempt a recovery. If they manage to break above $32, then Avalanche has a good shot at a relief rally.

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