AVAX Technical Outlook
Analyzing AVAX on a daily time frame, it is clearly seen that the coin has been trading within a wide descending channel pattern for a long period of time. So far, the lower, mid, and upper borders of this falling channel have worked properly and are still valid, continuing to give direction to the price.AVAX is currently trading at the mid-border of the mentioned channel. The range between the levels at $22.40–$23.80 is crucial as this range works as a horizontal support and as a previous reversal zone. The price is trying to bounce from this zone. If it can hold above this area, upside potential could be kept.We see that the upper border of the channel and the resistance zone intersect at $30.20–$32.90, which could serve as a strong resistance level in the next uptrend. If this zone gets broken with huge momentum, the descending channel formation will also be broken above, and a medium-term positive trend will probably start then.We should be following the range between the levels $20.00–$18.74 as the first support line in case of a possible drop scenario. If the price closes below this zone, then it can pull back to the lower border of the channel formation.
- Summary:• Price: $22.97, trading around the middle border within the descending channel• Support: $22.40 – $23.80 (holding above it is positive)• Resistance: $30.20 – $32.90 (overlapping the upper border of the channel)• Lower support: $20.00 → $18.74
The price is trading within the falling channel. However, as long as the price holds above $22, positive expectations remain. The upper border of the channel is a key area for a trend reversal.
These analyses, not offering any kind of investment advice, focus on support and resistance levels considered to offer trading opportunities in the short and medium term according to the market conditions. However, traders are responsible for their own actions and risk management. Moreover, it is highly recommended to use stop loss (SL) during trades.
