Avalanche (AVAX) – Repowered its negative bearing

Avalanche (AVAX) – Repowered its negative bearing

Avalanche’s (AVAX) bears returned with vengeance in the vicinity of the 2/1 Gann fan angle and squeezed the price below the exponential moving averages and decisively snapped the mid-October bottom underpinning the medium-term negative structure.

The momentum indicators point to more declines ahead as the MACD has slid below its signal line and nudged into the negative area and the RSI is plunging beneath its 50-neutral mark. Moreover, the 20-day exponential moving average reversed lower below the 50-day moving average suggesting that downside pressures will further increase in the coming sessions.

Hence, following the recent drop below the latest bottom of 14.45, the sell-off is expected to accelerate towards the 161.8% Fibonacci golden number of the last up leg at 10.65. By clearing these boundaries, the sellers will aim for the 227.2% Fibonacci level at 6.63.

Otherwise, if buyers start to push back, initial resistance could stem from 20- and 55-day exponential moving averages located just below the 2/1 Gann fan angle. Not too much higher, another battle will take place around Saturday’s top of 20.60. Beyond the latter, the spotlight will turn to the 3/1 Gann fan angle and the August 2^nd inside swing bottom of 22.26.

All in all, Avalanche has repowered its negative bearing below the exponential moving averages. The recent drop below 14.45 is expected to bolster selling appetite initially towards 10.65.