AVAX recovered from June through July. The token then slipped into August and created a bullish cup-handle pattern.
- AVAX intraday trade volume shows a 38.7% plunge
- Successfully reclaims 20-day EMA slope by Avalanche sellers
- Trading volume skyrockets to 487 million
Now, the pattern which can be spotted at the market bottom will serve as a feasible launchpad for the crypto’s recovery but in order to complete the pattern, the coin price should barrel past the $30.6 key resistance.
The V-top formation was reversed at $30.6. This resulted in the AVAX price dropping to $18.4 below the Fibonacci Retracement Level. The buyers that were able position themselves at this level saw a 25-percent increase to $22.53.
However, AVAX is being hampered by the huge selloff in crypto markets and this could cause a further decline.
This selloff on September 13th has ended any chance of the continuation of the trend. Evidently, yesterday’s selloff was caused by high CPI and Consumer Price Index data.
AVAX Low Volume Hints At Bulls’ Weakness
According to CoinMarketCap, AVAX’s price is down by 1.51% or trading at $18.84 as of this writing. The low volume seen with AVAX implies the bull’s waning commitment or weakness.
AVAX could fall below $18.3 if the selling pressure increases. If that happens, AVAX will likely continue to decline and try to reach $16.6 support.
The bullish trend may not end if buyers manage to protect the $18.3 support area. If so, the AVAX price could spike to $31.4
Avalanche’s EMAs show all indicators going down with the exception of the 50-day EMA which proves to be a hurdle to AVAX price.
AVAX RSI indicates a downward trend that is below the middleline, hinting at a negative sentiment in market.
CEO Announces KKR $417-Billion Merger
In other news, Emin Gün Sirer, Avalance (AVAX) Labs CEO announced on September 14 that KKR has made a $417-billion merger with Avalanche.
Avalanche is now able to tokenize and have access to more markets through Securitize. Social media metrics were amplified in recent months by this partnership announcement.
AVAX’s social engagements increased by 148.7% and there was a spike in social mentions of 257.3% over the last three months.
Additionally, AVAX’s market cap has risen by 4.31% in the last week. Trading volume has jumped from 324.2 millions on September 12, to 487,000,000 to date.
Source: TradingView.com| Source: TradingView.com Image featured from Cryptopolitan Chart: TradingView.com