- Avax’s prize trend was Beerarish in February
- Bullish divergence could see a price increase of almost 10%
Avalanche [AVAX] has reduced all the profit it has achieved since November. At the time of the press it seemed to have a strong demand zone just below $ 20, but it was unclear whether this zone could turn the strong downward trend behind Avax.
On the daily graph, the Altcoin has been trend down since the end of January, when it actively made a lower layer below the support level of $ 35. The momentum remained strong Bearish, but a bullish divergence began to form when it approached the $ 20 support.
Avax is confronted with resistance in the 20-day advancing average
Source: Avax/USDT on TradingView
The market structure and trend are Beararish in February. The 100% retro level that marked the LOS points of November at $ 22.35 has also turned to resistance. The next level of support is now at $ 19.73 – a considerable level of support from November 2023.
Interestingly, Avax approached the $ 20-psychological level, it was a divergence with the momentum indicator. The prize made lower lows while the MACD indicator made higher lows. This suggested that a price bounce can probably be in the coming days.
This would not be enough to reverse the downward trend. A market structure shift would take place if the Avax -token could set up higher swinghighs and lows. That is why the immediate resistance for Avax against violation would be $ 26.54, just above 20 DMA for $ 24.24. However, as things are now, such a movement does not seem imminent.
Liquidation data from CoingLass has also emphasized that the $ 27.4 level is a strong magnetic zone. This meant the lower period of time local highlights at $ 23.4 that the $ 23.7- $ 24 region is also a short-term objective.
In the south, the $ 20 zone also had a cluster of liquidation levels. Given the bullish divergence and bitcoin’s [BTC] Buiter above $ 85k, there is a chance that Avax would go to $ 24 next. Traders must be careful because a BTC decrease can cost the price up to $ 19.7- $ 20.
Disclaimer: The presented information does not form financial, investments, trade or other types of advice and is only the opinion of the writer
