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Avalanche [AVAX] reclaims range low – Is the rally sustainable

2min Read

The bearish pressure over the past few days has persisted despite impressive performance on AVAX’s DeFi front.

Avalanche [AVAX] reclaims range low - Is the rally sustainable

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

  • AVAX inflicted a bearish breakout on 21 May. 
  • AVAX reclaimed the key level; sellers couldn’t be overruled.

An extended selling pressure witnessed over the weekend (20/21 May) saw Avalanche [AVAX] inflict a bearish breakout. The drop forced AVAX to hover near the March low of $13.9. But, there was a mild rally at press time, pushing AVAX to reclaim the range low of $14.54. 


Is your portfolio green? Check out the AVAX Profit Calculator


Interestingly, the bearish pressure over the past few days has persisted despite impressive performance on AVAX’s DeFi front. With BTC yet to cross $27k again at press time, can bulls bet on this level? 

Can bulls defend this level?

Source: AVAX/USDT

After the price rejection near the range high of $15.4 on 18 May, AVAX plunged, smashing the mid-range of $14.93 but steadied near the range lows of $14.52. 

On 21 May, sellers inflicted a bearish breakout over the weekend as bearish pressure intensified. But a rebound was witnessed, as bulls fronted a recovery near March lows at press time. 

The rally reclaimed range lows, leaving behind an FVG (fair value gap) of $14.41 – $14.53 (white), below the range extreme. This makes the area a strong bullish stronghold. 

A positive price reaction from this level could see AVAX retest the mid-range of $14.93. The rally could extend to the range high of $15.24 if BTC reclaims $27k and surges.

If that’s the case, going long at the current levels, targeting mid or range high, will offer a good risk ratio. 

A drop below the range low and FVG zone ($14.40) will be an invalidation. Such a downswing could push AVAX to retest the March low again. 

Meanwhile, the RSI rose but stalled near the 50-mark, highlighting improved buying pressure, but sellers couldn’t be overruled. On the other hand, CMF eased above the zero mark, reiterating capital inflows wavered at press time. 

CVD spot nosedived

Source: Coinalyze


How much are 1,10,100 AVAXs worth today? 


The CVD (Cumulative Volume Delta) spot has declined significantly since 18 May, highlighting the sellers’ leverage in the past 4 days. However, there was a slight rise in press time, capturing the recent rally. 

It remains to be seen if the rally will be sustainable. Hence, it’s worth tracking BTC price action for better clarity on market direction.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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