Avalanche price remains negatively biased today. The price tested the multi-month lows around $18.50 following a broader crypto market meltdown. The recent market structure portrays the continuation of the downside momentum as the bulls failed to capitalize on the previous session’s pullback.
The AVAX bulls face rejection near the $21.80-$21.90 zone. As the mentioned level met with two sell-side conditions. However, it would be interesting to watch if the sellers would be able to defend or surrender near the current levels. As of writing the AVAV price is trading at $18.50, down 3.26% for the day.
The trading volume rose 25% to $538,428,564 in the past 24-hour. A rise in volume along with a decline in the price is a bearish sign.
Avalanche price holds near the crucial juncture
On the daily chart, the Avalanche price remains pressured below the $22.00 mark. What makes this level important to trade?
The bearish slopping trend line from the swing highs of $30.34 remained a challenge for the bulls. Further, the bulls made another failed attempt to breach the $22.00 zone. As it meets with the descending trend line, which acted as a strong upside barricade.
In addition, the price sliced below the 50-day exponential moving average, adding to the bearish pressure.
However, the downside is capped near the horizontal support line that extends from July. As the bulls always managed to defend this level.
On the 4-hour chart, the Avalanche price witnessed a steep fall on Tuesday eroding 11%. The sellers acted in full force and breaches all the important Fibonacci retracement levels. In the last hour, the price attempted to move higher as it bounced back from the intraday low of $18.16.
If the buying pressure continued the AVAX bulls could jump toward the 0.23% Fibonacci retracement level at $19.02 amid the oversold market structure. It is an important support-turned-resistance level. A move above this level provided additional buying participation occurs could take the price toward the psychological $20.0 level.
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On the flip side, a failure to sustain the session’s low amid renewed selling pressure could trigger another round of downside momentum in the asset. In that case, $17.50 is a possible lower target.