Avalanche is approaching a key support zone as bearish momentum persists. Will the bulls defend $16?
AVAX has been consolidating in a downtrend, forming lower highs and lower lows over the past month, which signals bearish momentum. As of press time, Avalanche is trading at $19, a 1.23% price drop over the past 24 hours amid low trading volume.
A look into the 1-day chart shows prevailing bearish pressure as bulls fail to hold above the $19 key resistance level. The MACD(12,26) and moving averages signal a ” strong sell,” pointing to further downside.
Source: X
According to renowned analyst Ali Martinez on X (formerly Twitter), if the selling pressure continues, AVAX could find support at $16. The market is eyeing this zone as a strong support where bulls might defend, triggering a price reversal. Previously, AVAX rebounded from this level, eyeing the $20-$22 range.
What’s next for AVAX?
According to Coinglass data, the coin’s long-short ratio stands at 0.9577 (a neutral zone) while the open interest has slightly dropped by 0.16%. This indicates that the $19 zone is a key battleground for the bulls and bears.
With the bears in charge, a high buying volume would hold AVAX back above the $19 zone. However, with the market’s prevailing bearish sentiment, $16 remains AVAX’s next stop as bulls anticipate defending and attempting a price reversal. A failure to defend this support could see AVAX drop towards $15 or more in the next few days.
<p>The post AVAX Eyes $16 Support- Is a Price Reversal on the Cards? first appeared on Coin Crypto Newz.</p>
