Avalanche nears key breakdown level that could sink AVAX price by another 65% By Cointelegraph


Avalanche nears key breakdown level that could sink AVAX price by another 65%

Avalanche (AVAX) gained 0.5% to reach over $31 on May 23 but AVAX price remains trapped inside a trading range that appears like a “bear pennant” structure.

Bear pennants are bearish continuation patterns, i.e., they resolve after the price breaks out of them to the downside and then—as a rule of technical analysis—falls by as much as the height of the previous downtrend, also called “flagpole.”

daily price chart featuring ‘bear pennant’ breakdown setup. Source: TradingView
AVAX/USD daily price chart featuring volume profile. Source: TradingView
AVAX/USD weekly price chart featuring Fib support and resistance levels. Source: TradingView
AVAX/USD daily price chart showing bullish divergence. Source: Scott Melker/TradingView