- AVAX price lost 19% on Monday to tank below the $60 psychological level.
- Avalanche market sentiment remains positive at it trades in the green above $66.
- If the current bullish momentum is sustained, AVAX could rally to tag the ATH above $77.
AVAX price prediction is bullish as it nurses wounds following yesterday’s market-wide crash. On Monday September 20 Avalanche was not left out in the cryptocurrency market bloodbath that saw the asset lose as much as 22.4% to lows of around $54.43.
The bloodbath was triggered by the fears that Evergrande, China’s largest real estate company might collapse under a $300 billon debt burden. This led to the crypto market losing over $250 billion in value after major crypto’s collapsed.
Leading the losses was the big crypto, Bitcoin (BTC) which dropped 9.87% to lows around $42,664 while Ether (ETH) fall as much as 12.36% to lows of about $2,921 to their lowest levels in over month. Even Cardano (ADA) and Solana (SOL), which have been skyrocketing recently, lost 8.95% and 13.15% respectively.
- If you wish to buy cryptos, read our guide on the best cryptocurrency to buy for more details.
AVAX Price Bulls Eye All-Time High Above $77
Avalanche price was consolidating over the weekend above $68 just before Monday’s crash. The long upper wicks on the September 18 and 19 candlesticks were an indication that profit taking was happening at higher levels. This saw the AVAX price reach a new record-high around $77.28 on Sunday September 19.
Yesterday’s sell-off intensified today as the AVAX/USD price dropped below the $57.0 support level to lows of around $51.54. However, the long lower wick on today’s candlestick shows that investors were getting in on the dips as bulls aim to undo yesterday’s losses. At the time of writing, AVAX teeters at $60.88.
AVAX/USD Daily Chart
The strong rebound off the $57.0 support line which coincides with the lower boundary of the ascending parallel channel suggests that Avalanche’s market sentiment remains positive as traders continue ‘buying-the-dips’. If the AVAX price sustains above the $60.0 psychological level, the bulls will be bolstered to push Avalanche to tag the all-time high above $77.
Avalanche’s bullish narrative is accentuated by the upward movement of the Relative Strength Index (RSI) which suggests that the bulls are currently in control. Moreover. the position of the Moving Average Convergence Divergence (MACD) indicator above the zero line in the positive region points to a positive market sentiment.
However, if things go awry for AVAX and it slides below the $57.0 defence line, bears might pull the asset lower to tag the $51.51 and $49.27 support levels. A drop further could see AVAX price record massive losses towards the 50-day Simple Moving Average (SMA) around $40, the 200-day SMA at $26.59 and the 100-day SMA at $27.71 respectively.
- Do you wish to buy Avalanche? Our guide on crypto brokers might be helpful.
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Nancy Lubale
