Avalanche (Avax) just took a sharp turn because it drops under an important trend line of 4 hours, which indicates a potential shift in Momentum that traders have at high alert. What ever looked like a steady climb has suddenly rented, so that concern about the further downward pressure for the crypto assets is expressed when buyers do not recover control.
Not recovering can cause new lows for avalanche
In his recent afterTradinggain noted that “Avalanche output means a shift in Momentum from Bullish to Bearish”, which marks a crucial moment for actively. The prize went under an important trend line on the 4-hour graph, which had previously offered strong support during the recent uprising. This infringement suggests that the sales pressure is starting to weigh than the Bullish Momentum.
He further pointed out that Avax “currently the broken trendline redest”. This phase is crucial, because it often determines whether a breakdown is confirmed or will become invalid. If the bulls manage to push the price above this level again, there may be a chance for a rebound.
However, a non -refinement of the trendline can open the door for a deeper correction to $ 21 and lower. “This reinforces the need for traders to look closely at the price promotion in the upcoming sessions, especially around the retest zone, because it could be the next major movement for Avalanche.
Momentum fades as a RSI weakened
The action act, the trade, also point out that the relative strength index (RSI) further reinforce blinking signs of weakness. The RSI has decreased steadily, which strengthens the idea that the momentum for the bears tilts. This adds a different confirmation layer to the recent trendline break, which suggests that the upward process may lose steam.
He emphasized the importance of closely following price action between $ 22.8 and $ 23.0, an earlier support region that now acts as a potential resistance level. If Avax is not confronted with this zone and rejection, this can solidify the bearish story and open the door for further downward movement. For now, traders must remain careful and see how the market reacts around this crucial area.
In his final remarks, the analyst urged traders to stay alert and to prevent them from hasten in transactions. He emphasized the importance of having the market reveal his direction before he made decisive movements, especially with avalanche that was at an important level.
At the time of writing, Avalanche changes ownership of around $ 23.74, with a price increase of 6.61% in the last 24 hours. The upward movement is accompanied by an increase in trade volume by 5.72%, which suggests a new wave of market participation.