Avalanche [AVAX] bulls can steer through this bearish breakout

The liquidations of Avalanche’s [AVAX] the previous symmetrical triangle brought the alt below the eight month trend line support (previous resistance).

But market-wide growth helped the bulls secure a stance above the $ 21 level. Additionally, the recent patterned breakdown could slow short-term bullish momentum.

If buyers are adamant about defending the $ 21 level, AVAX could see a phase of low volatility before any chance of a raise. As of press time, AVAX was trading at $ 22.47, down nearly 14% in the past 24 hours.

AVAX daily chart

Source: TradingView, AVAX / USDT

AVAX lost more than 90% of its value from its ATH and plunged to a ten-month low on June 19th. Hence, the bulls were quick to claim a place above the trendline support (yellow, dashed). This return saw reversal trends from the $ 30- $ 31 range resistance.

The recent breaking of the rising wedge inflicted an increase in sales volumes as AVAX plunged below its EMA bands.

With the price action approaching the $ 20- $ 21 support range, buyers would aim to look for rebound opportunities.

Here, the potential targets could lie in the $ 24 zone. However, shoppers’ inability to intervene would encourage ongoing dullness.

If so, AVAX may enter a compression phase in the next few times.

A convincing close below the $ 20 support would open shorting opportunities bringing the target into the $ 16- $ 18 range. Traders need to carefully consider the implications of macroeconomic factors on market sentiment.

Rationale

Source: TradingView, AVAX / USDT

After breaking out of the midline support, the RSI moved down to the bearish region and tried to enter the oversold region. The bulls still had a long way to go to reverse the fate of their fantasy.

Although the OBV has apparently held its support level, any rebounds could provoke a short-term bullish push. Traders need to watch out for a bounce before making calls.

Additionally, the MACD bearish crossover reaffirmed bearish strength, but the lines still had to dip below the midline to represent a one-sided bearish border.

Conclusion

Due to the immediate support range in the $ 20- $ 21 zone, buyers are hoping for a plausible awakening. But a bearish crossover on the EMA tapes could only cause slowness in the near future. The goals would remain the same as discussed.

Finally, investors / traders need to keep an eye on the movement of Bitcoin. This reading would be essential to integrate these technical factors.

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