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AVAX may be facing a potential 19% price reversal – What should you know?

Press Releases Crypto News AMB-Crypto AVAX may be facing a potential 19% price reversal – What should you know?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

AVAX’s price action over the past few weeks chalked a bearish rising wedge pattern
Aggregated CVD spot declined, but the funding rate remained positive.

AVAX’s increasing price-volume divergence and weakening uptrend could impact investors in the near future. The altcoin’s overall price action from mid-March chalked a bearish rising wedge pattern, one which could tip the scale in favor of bears. This, especially if Bitcoin [BTC] breaks below its $26.8K – $28.8K range.

Read Avalanche [AVAX] Price Prediction 2023-24

Is a bearish breakout likely?

Source: AVAX/USDT on TradingView

The $14-support stopped AVAX’s sharp depreciation in the second half of February. Later on, bulls registered some recovery. However, renewed efforts to reclaim the $21-price level could be undermined by the increasing price-volume divergence seen at press time. Additionally, the bearish rising wedge pattern could add more downward pressure and lead to likely retracement.

A possible retracement could set AVAX to drop to the previous support of $14 – A 19% potential drop based on the rising wedge’s height. However, the bearish breakout could face downward resistance at $16.47. Ergo, it may be worth watching out for.

A close above $19 will invalidate the aforementioned bearish thesis. Such an upswing could push AVAX to retest or break above the bearish order of $21, especially if BTC reclaims $29K.

Meanwhile, the RSI (Relative Stren

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Author: Suzuki Shillsalot

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