seems to have entered a corrective trend after an impressive bull run.
The central theses
- avalanche made a 22%dive and fell to a low of $ 54.84
- The TD sequential indicator has anticipated the declining price campaign.
- Another sales pressure could press AVAX to $ 34.91.
Investors seem to book profits after the price of avalanche has shot a whopping 720% in the past two months.
avalanche hits local top
Avalanche has fallen by almost 22% since the weekly trading session. The so -called "killer" lost over 15 points to the market value and rose from a maximum of $ 70 to a low of $ 54.84 before recovering. Avax is currently trading at $ 62.27 at the time of writing.
The price movement down seems to have been anticipated by the Tom Demark (TD) sequential indicator. This technical index presented sales signals in the form of nine green candles on the 1-week, 1-day and 12-hour charts from AVAX. The Bärische Formations predicted a steep correction of the avalanche, which seems to be confirmed today.
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Another sales pressure could lead to further losses, since the TD setup predicts retracement that holds one to four candles in each of the aforementioned time frames.
Avax Futures Weekhart
The Fibonacci retracement indicator, measured from the low of July 20 from $ 9.31 to the all-time high of $ 76.33, indicates that Avalanche has plenty of scope before falling stable support.
An increase in sales orders behind this cryptocurrency could press the prices in the direction of the Fibonacci retracement level of 50% or 61.8%. These critical support levels are $ 42.82 or $ 34.91.
Avax Futures Weekhart
Despite the pessimistic technical analysis, it is worth taking into account the growing activity in the AVAX network. In the past few weeks there has been a steady migration of DAPP users from other networks such as Ethereum to Avalanche because it offers cheaper and faster transactions.
On-Chain data of Defi Llama shows spaserver-spaces = "True"> that the total value (TVL) has been shot since 19 August and September 9 has reached a new record high of $ 2.96 billion.
Further network growth could lead to further price increases for avalanches. Therefore, market participants should take a close attention to the level of resistance of $ 76.33. The breaking of this barrier could drive Avax in the direction of $ 100 or higher.
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