Isn’t the avalanche heading south over yet?

• Course (AVAX): $28.76 (previous week: $32.32)
• Resistances/Goals: $32.21, $36.40, $40.95, $44.56, $52.98, $59.01, $64.47, $69.72, $73.22, $79.83, $92.60, $99.57, $104.02
• Supports: $27.41, $25.20/23.64, $21.54, $17.51, $14.74, $11.20, $10.37/9.29

Course analysis based on the pair of values AVAX/USD on Binance

Avalanche Recap:

• In addition to other major cryptocurrencies such as Solana (SOL), Cardano (ADA) and Polkadot (DOT), the sell-off on the overall market also hit Avalanche (AVAX) like an avalanche.
• Within a few trading days, the AVAX price rushed south by 65 percent and subsequently formed a new low for the year at USD 23.64. Avalanche thus undercut the maximum price target on the bottom stated in the last price analysis. For a short time, Avalanche even undercut the important support at USD 25.20, but was able to save itself back above this price mark at the daily closing price.
• Subsequently, the bulls tried to heave the AVAX price back above the cross-resistance of horizontal resist and 23 Fibonacci retracement, but failed several times at the resistance level at USD 36.40.

• Yesterday, Thursday, May 19, Avalanche marked a fresh low for the week at USD 27.41 before the first investors got back in.
• Technical indicators are also showing an oversold condition for Avalanche, supporting the likelihood of an initial bottoming opportunity.
• However, as long as the AVAX price is below the supertrend at USD 44.56, the bears will continue to want to use any price weakness in the market for a new sell-off.

Bullish Variant (Avalanche)

• The AVAX price tried several times to break through the first relevant resistance level at USD 36.40 in the last few trading days, but without success for the time being. Again and again this resist level was used for profit taking.
• Only when Avalanche can dynamically break out of this price level at the end of the day will the next price targets of USD 40.95 and USD 44.56 in particular come into the eyes of investors.
• The upper edge of the orange resistance area thus represents the first short-term price target for Avalanche.
• If this resist is recaptured in the long term, the chart picture will brighten slightly again and the focus of investors will return to the tear-off edge at USD 52.98. In the green resist zone with the upper edge at USD 59.01, the bulls should initially struggle. In addition to the EMA50 (orange), the higher-level 50 Fibonacci retracement also runs here.

First chart brightening imaginable

• If the bulls can pierce this area to the upside in the coming weeks of trading, the red resist area will activate as the next upside target. At USD 64.47, and especially USD 69.72, resistance from the seller side is again to be planned. The EMA200 (blue) is currently at this price mark and just above it at USD 73.22 is the golden pocket of the price movement.
• In the medium term, the red resist area is to be regarded as the maximum increase target. The current market situation does not allow for higher price fantasies.

• If the buyers can avert another sell-off by the bears and then stabilize Avalanche above USD 73.22 in the coming months, an initial rise to USD 79.83 is conceivable. This resistance level has been heavily contested in the past.
• If the buyer side is able to muster enough purchasing power and the traditional financial market regains its former strength in the second half of the year, an increase up to USD 92.60 and a maximum march through to the yellow resistance area around USD 100 cannot be ruled out.
• However, the chart situation makes a rise back above the psychological $100 mark very unlikely for the time being.

Bearish Variant (Avalanche)

• The bears also took advantage of the moment at Avalanche and pushed the AVAX price massively south. Although Avalanche was able to recover in the meantime, the fact that the AVAX price failed at the 23 Fibonacci retracement does not indicate any price strength.
• If Avalanche slips below its weekly low of USD 27.41 in a timely manner, a fresh start at the previous week’s low is likely. If the bulls remain on the sidelines this time and do not stabilize the AVAX price here, the corrective movement will initially extend to the lower edge of the blue support zone. The support mark at USD 21.54 is important in this respect.

Is Avalanche slipping back to its year-earlier low?

• If this support is also dynamically broken down, the sell-off should accelerate again and the USD 17.51 ​​mark will come into focus.
• Here is to be planned in the first contact with increased resistance from the bull camp.
• If this support is also abandoned in the course of an ongoing overall market correction, the medium-term target mark on the downside at USD 14.74 will come into the focus of the sellers.
• Reaching this support area should also be the final goal of the seller for the coming trading weeks.
• In the long term, a fall back to USD 11.20 or even below would be conceivable.
• The lows from the summer of 2021 between USD 10.37 and USD 9.29 can no longer be ruled out as possible bearish price targets until autumn.

Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations. They are merely an assessment by the analyst.

The chart images were created using TradingView created.