With an extensive selling phase in action, the AVAX price is 19.24% below the previous swing high of $15.59 within 25 days. The downward trend results in a strong resistance trendline keeping the bullish growth in check, leading to lower high formations.
Moreover, the AVAX price is now below the 61.80% Fibonacci level and a long-coming support trendline.
With buyers failing to hold the AVAX prices above $12.87, the 4.83% drop tests the bullish dominance at the 78.60% Fibonacci level at $12.13. The buyers manage to revert the drop with a bounce back to challenge the overhead resistance trendline.
Currently, the AVAX price is up by 1.55% in the last 24 hours and continues to challenge the resistance trendline.
Coming to technical indicators, the Stochastic RSI shows an uptick as the lines approach the oversold territory, indicating a potential reversal. However, the MACD lines show a bearish crossover due to the rise in the selling spree.
If the ongoing recovery continues and breaks the resistance trendline, the buyers can lead the uptrend to new heights. The unleashed trapped momentum can fuel the AVAX prices to $14.
In case of a prolonged selling phase, the break out of the breakdown of the 78.60% Fibonacci level at $12.13 can lead to an extended 8% fall to the $11.19 level.
