AVAX short-term bearish trendThe AVAX price is currently below the 20-day and 50-day Exponential Moving Averages (EMA) (magenta and orange lines), indicating a short-term bearish trend. Market sentiment remains pessimistic, negatively impacting demand. The 4-hour analysis suggests that AVAX may struggle to break through the upper resistance level, which is also evident on the daily chart. I marked in blue the support zone that has been lost for now, but it could be reclaimed as it has proven to be quite strong in the past.
RSI: Bearish (below 50)
Stochastic RSI: Oversold, so a slight rebound is expected
MACD: In the bearish zone and showing a bearish signal
For a long time, AVAX was moving within the yellow sideways range, but due to BTC’s influence (what else?), it broke downward and re-entered the downtrending channel (red zone). However, if Jeremiah doesn’t tear down the sandbox and we can keep playing, I believe AVAX will break out of this downtrend since, in my opinion, it is undervalued.
Nevertheless, I’ve outlined a Plan B (red path), which could influence its movement. If tonight turns out badly, there’s a chance that even the $31 support zone won’t hold, and AVAX could drop to the $26 zone. But this is just speculation—I find it more likely that the "kick effect" will work at the $31 level, pushing the price upwards if it reaches that point.
Red zones: Resistance levels
Green zones: Support levels
A bullish divergence is visible on the RSI in the 4-hour chart (orange line)
What do you think about AVAX? Option A or B (black or red path)?
