Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- AVAX inflicted a bearish breakout on 21 May.
- AVAX reclaimed the key level; sellers couldn’t be overruled.
An extended selling pressure witnessed over the weekend (20/21 May) saw Avalanche [AVAX] inflict a bearish breakout. The drop forced AVAX to hover near the March low of $13.9. But, there was a mild rally at press time, pushing AVAX to reclaim the range low of $14.54.
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Interestingly, the bearish pressure over the past few days has persisted despite impressive performance on AVAX’s DeFi front. With BTC yet to cross $27k again at press time, can bulls bet on this level?
Can bulls defend this level?
After the price rejection near the range high of $15.4 on 18 May, AVAX plunged, smashing the mid-range of $14.93 but steadied near the range lows of $14.52.
On 21 May, sellers inflicted a bearish breakout over the weekend as bearish pressure intensified. But a rebound was witnessed, as bulls fronted a recovery near March lows at press time.
The rally reclaimed range lows, leaving behind an FVG (fair value gap) of $14.41 – $14.53 (white), below the range extreme. This makes the area a strong bullish stronghold.
A positive price reaction from this level could see AVAX retest the mid-range of $14.93. The rally could extend to the range high of $15.24 if BTC reclaims $27k and surges.
If that’s the case, going long at the current levels, targeting mid or range high, will offer a good risk ratio.
A drop below the range low and FVG zone ($14.40) will be an invalidation. Such a downswing could push AVAX to retest the March low again.
Meanwhile, the RSI rose but stalled near the 50-mark, highlighting improved buying pressure, but sellers couldn’t be overruled. On the other hand, CMF eased above the zero mark, reiterating capital inflows wavered at press time.
CVD spot nosedived
How much are 1,10,100 AVAXs worth today?
The CVD (Cumulative Volume Delta) spot has declined significantly since 18 May, highlighting the sellers’ leverage in the past 4 days. However, there was a slight rise in press time, capturing the recent rally.
It remains to be seen if the rally will be sustainable. Hence, it’s worth tracking BTC price action for better clarity on market direction.