AVAX Could Pull Back to $27 as Bulls Exit Its ChartsA bearish rising wedge pattern has emerged on the BINANCE:AVAXUSDT daily chart, which suggests that its price may undergo a correction soon. This pattern formed after the altcoin’s price was rejected by the $37.15 resistance level over the past 24 hours. Should AVAX fail to close a daily candle above this key price point within the next 48 hours, it may be at risk of falling to the immediate support level at $27. Thereafter, continued sell pressure may lead to the cryptocurrency’s value falling to as low as $20.15 in the short term.
This bearish thesis could be invalidated if AVAX closes a trading session above $37.15 in the next 2 days. In this more bullish scenario, the altcoin’s price could climb to as high as $52.60 through the course of the following few days.
The daily Relative Strength Index (RSI) indicator suggested that buyers have started exiting AVAX’s chart. Currently, the RSI line is closing in on the RSI Simple Moving Average (SMA) line, which is normally seen as an early signal of a bearish trend reversal.
