Avax Resumed Drop Yesterday and Showed Signs of Weakness. Will the Bulls Manage to Regain Control?

After witnessing a small recovery earlier this week, Avax resumed drop yesterday and showed signs of weakness. Although its macro-bullish trajectory

Avax price showed signs of weakness yesterday after resuming its drop from earlier this week. Despite the macro-bullish outlook, there isn’t enough buying volume to propel recovery.

Avax’s daily outlook remains bearish after facing several drag downs since the beginning of the month. However, the market sentiment is still bullish from a long-term perspective.

After witnessing a sharp rejection at the $33 low last week, which also marks a 50% correction from where the market initiated drops earlier this month, the price recovered slightly but is now looking weak after rejecting $42.

If the continuous price drop causes a broader correction to last month’s break-out level, it could provide a huge discount. Failure to bounce back from there may result in a serious loss until it finds firm support.

However, if we look at the recent setup from a technical perspective, Avax may be able to resume its bullish momentum anytime soon. A double-bottom pattern could form above last week’s low, and if that plays out, we can expect a fresh increase in the market.

Towards the upside, the monthly high may pose a little threat. A clear break above this level could fuel another surge amid this bull cycle. As it stands, there’s still hope for the bulls.

Avax’s Key Level To Watch

Should the bulls fail to defend last week’s low well, the price could break through last week’s $33.6 low to the $29.9 level. Lower support levels to watch for a test are $27 and $23.9.

A rebound from the current trading level could propel recovery to the $42 resistance. The higher levels to consider for a surge are $48.1, followed by $55.5.

Key Resistance Levels: $42, $48.1, $55.5

Key Support Levels: $33.6, $29.9, $23.9

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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