AVAX Price Prediction: Increasing Supply At Key Resistance Puts Avalanche Coin On 15% Downside Risk

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AVAX Price Prediction: The ongoing recovery rally in the AVAX coin price took a major halt at the $18 resistance zone. Within a fortnight, the coin rechallenged the aforementioned resistances several times, but the result ended with a high price rejection attached to the daily candles. These rejection candles indicate the traders are aggressively selling at bullish rallies, increasing the likeliness of a downtrend resumption.

Key Points:

A cluster of candles between $18 and $16 indicates indecisiveness among market participants.
A bullish breakout from $18 will signal the continuation of the prior recovery rally.
The intraday trading volume in Avalanche coin is $100.5 Million, indicating a 50.4% loss.

Source- Tradingview

Over the past six days, the AVAX price has turned sideways and wobbled between the $18 and $16 levels. This consolidation accentuates the current FUD surrounding market crypto, limiting growth potential in the majority of major cryptocurrencies. By the press time, the AVAX price trades at the $16.84 mark with an intraday gain of $0.42%.

If the ongoing uncertainty in the market continues, the AVAX price will prolong the range-bound movement, and the buyers will get an additional opportunity to challenge at $18. A daily candle closing above $18 will release the trapped bullish momentum and surge the price by 10% to hit $19.7.

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On a contrary note, a breakdown below $16 will increase the possibility of downtrend resumption and may plunge the prices to $15.4, followed by $14.

Technical Indicators

Bollinger band: the coin price wobbling between the midline and upper band of the Bollinger band indicator suggests the buyers have the upper hand to control future pride movement.

RSI: The daily RSI slope wavering near the midline indicates a neutral sentiment among market participants.