fxstreet.com
- $AVAX price created two equal tops at $127.69 on November 30 and December 22, signaling a reversal soon.
- So far, Avalanche price has dropped 9% and is likely to crash another 25% to $90.79.
- A daily close above the double top at $127.69 will invalidate the bearish thesis.
$AVAX price has formed a top reversal pattern, indicating that the uptrend is ending. While the bulls attempt to sidestep this fate, Avalanche is likely to come crumbling down soon.
$AVAX price eyes lower lows
$AVAX price has set two swing highs at $127.69 on November 30 and December 22, leading to a double top reversal pattern. A reversal of the uptrend often follows this setup. The bearish outlook will push Avalanche down to the immediate support level at $101.49. This correction will represent a 17% downswing but is not where $AVAX will stop.
A breakdown of this barrier and an increase in selling pressure will knock the altcoin down to the 62% and 70.5% retracement levels at $95.23 and $90.79, respectively. In total, this downtrend will constitute a 25% loss.
Moreover, if things take a turn for the worse, $AVAX price will continue to slice critical levels and reach the range low at $75.40. A dip below this barrier will allow market makers to collect the sell-stop liquidity.
$AVAX/$USDT 4-hour chart" src="https://cnews24.ru/uploads/470/47031d6f6fe428f7312eb83bca5beba6cbe929af.png" size="1941x1103">
$AVAX/$USDT 4-hour chart
On the other hand, the bearish outlook could be delayed if $AVAX price decides to go for the buy-stop liquidity resting above the double top formation at $127.69. While this liquidity run is plausible, a daily close above it will indicate a high and consistent buying pressure, invalidating the bearish thesis.
In this situation, $AVAX price could rise by 9% to retest the $139.34 hurdle.