AVAX price enters a downtrend at $ 54 despite Coinbase listing
- The AVAX price slips below the bearish ascending wedge pattern, warning of a deep retracement.
- The standard Coinbase pump and dump behavior weighs on the short-term bullish action.
- Sellers are considering the $ 54 level for a short target; bulls seek support.
AVax’s price has been in tears recently, easily outperforming all of its peers. As a result, the downward pressure seen in the wider cryptocurrency from -50% to -70% in September is foreign to AVAX. Instead, AVAX has more than doubled since September 1st open.
AVAX price retreats and falls below a significant downtrend
The AVAX price has been the envy of bullish traders, rallying over 106% since the September opening. However, an upward wedge has formed, signaling a deep corrective movement to come. There was some hope that the Coinbase listing announced on September 29e would propel AVAX into the corner and eliminate any bearish momentum, but the lower trendline of the corner held as resistance.
Coinbase’s listing, while fundamentally bullish, almost always resulted in pump-and-dump price action behavior. The AVAX price was the definition of ‘entry price’ at the time of the announcement, with early buyers now considering the opportunity to take profit. Short sellers will target the confluence area of support at $ 54, where Kijun-Sen and 38.2% Fibonacci retracements exist.
AVAX / USDT Daily Ichimoku Chart
Buyers will need to close the AVAX price above the Tenkan-Sen and eventually move back inside the bullish wedge. Then, they must continue their upward momentum to overcome the ascending wedge. If they can complete this scenario, then any short-term bearish outlook will be invalidated.
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