AVAX had time to recoup from June to July and then in August, the token slipped and formed a bullish cup and handle pattern.
AVAX intraday trading volume indicates a 38.7% plunge
Avalanche sellers successfully reclaimes the 20-day EMA slope
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.
With the reversal of the V-top formation seen at the key resistance level of $30.6, the AVAX coin price dropped to $18.4 of the Fibonacci retracement level. It is however beneficial for buyers who were able to position right at this level prompting a 25% spike to $22.53.
On the other hand, the massive selloff happening in the crypto market hinders the recovery of AVAX price and threatens a further downtrend.
The selloff that happened on September 13 has sloughed off the possibility of completing the pattern. Evidently, the downtrend that took place yesterday was triggered by the high CPI or 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.
In the event that the selling pressure intensifies, AVAX could suffer a slump to $18.3 and then try to breach under that level which can further extend the decline to match the $13.6 low support seen in June.
Now, if the buyers are able to defend the support zone at $18.3, then the bullish movement may persist and the AVAX coin price will 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 shows a downtrend that heads under the midline hinting at a negative market sentiment.
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.
With Securitize, a FinTech company, Avalanche can proceed with tokenization and accessibility to a wider range of markets. The partnership announcement has amplified social media metrics in the past few months.
More so, AVAX social engagements escalated by 148.7%, plus also a surge of social mentions at 257.3%, as seen in the past three months.
Further, the AVAX market cap has also spiked by 4.31% as seen in the past week with trading volume skyrocketing from 324.2 million on September 12 to 487 million to date.
BTC total market cap at $384 billion on the daily chart | Source: TradingView.com
Featured image from Cryptopolitan, Chart: TradingView.com