AVAX price marked the end of its uptrend after almost two months of exclusivelyup. This happened after the recent decline in the price of bitcoin, which led to the fall of many altcoins, notes the HCN edition.
Between June 19 and August 8, the price of AVAX increasedby 126%. This is a significant jump and set a swing high at $30.98. The connection of trend lines with these pivot points forms an ascending parallel channel.
August 18 AVAX price for a whileconsolidated around the $25.47 support level and then collapsed by almost 20%. This sharp drop pushed the altcoin to a bearish breakout of the ascending parallel channel.
Now the price of AVAX fluctuates around the levelsupport at $22.33 and could theoretically lose another 22%, falling to the target of $17.58. However, buyers at the $20.16 support level could stop this selloff and trigger a reversal.
Another scenario to keep in mindmarket participants, is a return to a four-hour price gap at $25.32 before falling to $20.16 or $17.58. In this case, shortists will have an advantage, as the potential profit will increase from 24% to 30%.
On the other hand, if the price of AVAX passes the levelresistance at $25.47, it will not only recover inside the ascending parallel channel, but will also refute the bearish thesis. In this scenario, a resumption of the rally could see the Avalanche bounce back to $30.20.
