1651684619469 1ee188a2 9106 48c4 b432 cccdc7075344 HSy8yC Avalanche slips back into the consolidation zone, but how far can the price drop?

Avalanche slips back into the consolidation zone, but how far can the price drop?

Avalanche’s AVAX has slipped below a key breakout zone as price corrects

AVAX price has more than doubled since June

The token faces further bearish pressure after breaking below the 21-day MA

Avalanche AVAX/USD is trading at $26.12. The price is a slight drop from around $30 at the start of the month. It should be noted that $27.5 is the key resistance zone for the token. Investors could have started to take profit as the price was more than doubled from $13 in mid-June.

The level between $21 and $27.5 is very important for AVAX. It is the consolidation zone that allowed the 50-day MA to join support for AVAX. As AVAX enters the zone, investors could be looking at the slightest indication of a bullish reversal to buy. We project further bearish weakness, with the 50-day MA as the reference level. 

AVAX breaks below 21-day MA to enter the consolidation zone

Source – TradingView

Technical levels for AVAX are $27.5. Now resistance and support zones are at $21 and $16. The suggestion is that if the price does not recapture the $27.5 level, it could drop next to $21. The MACD line has closed below the moving average, pointing to building bear weakness.

However, we should remember that the 50-day MA is currently at $22.8, above the main support. The moving average coincides with a market event area where AVAX faced some resistance. The region between $22 and $23 should be watched closely as another potential reversal zone.

Summary

AVAX has entered a consolidation zone after slipping below $27.2. The token could fall to the next support at $21. However, the area around $23 could offer support and ignite a bullish reversal. The level also coincides with the 50-day moving average.

The post Avalanche slips back into the consolidation zone, but how far can the price drop? appeared first on CoinJournal.

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