(Akash Girimath – FXStreet)
– AVAX price has broken below an ascending parallel channel, hinting at a sell-off.
– Investors can expect a 22% crash to $17.58, but bulls could prematurely reverse the dip around the $20.16 barrier.
– A daily candlestick close above $25.47 will invalidate the bearish thesis for Avalanche.
AVAX price has denoted an end of its uptrend after nearly two months of up-only movement. This development comes after the recent Bitcoin price crash, which has also caused many altcoins to suffer.
AVAX price ready to nosedive
AVAX price racked up 126% in gains between June 19 and August 8. This massive run-up that set a swing high at $30.98 was in the form of higher highs and higher lows. Connecting trend lines to these swing points reveals an ascending parallel channel.
On August 18, AVAX price consolidated around the $25.47 support level for a moment before crashing nearly 20%. This nosedive pushed the altcoin to produce a bearish breakout of the ascending parallel channel.
Now, AVAX price hovers around the $22.43 support floor and could theoretically crash 22% to reach its target at $17.58. However, buyers at the $20.16 support floor could stop this sell-off prematurely and potentially trigger a reversal.
Another scenario that market participants need to be mindful of is the throwback to the four-hour fair value gap at $25.32 before a crash to $20.16 or $17.58. In such a case, the short-sellers would be at an advantage as the potential gain would go from 24% to 30%.
On the other hand, if AVAX price flips the $25.47 resistance level, it will not only recover inside the ascending parallel channel but will also invalidate the bearish thesis. In such a case, the re-ignition of the rally could see Avalanche revisit the $30.20
Are meme coins ready for local rise?
(Denys Serhiichuk – U.Today)
The week is about to close bearish for the cryptocurrency market as all the top 10 coins are in the red zone.
Top coins by CoinMarketCap
DOGE/USD
DOGE has followed the drop of other coins, going down by 11% over the last week.
On the weekly chart, DOGE has almost absorbed the last bullish candle, which means that bears are about to seize the initiative.
If the candle closes below the $0.07 mark, it may cause a sharp drop to the next level at $0.06. Such a scenario is relevant until the end of the upcoming week.
DOGE is trading at $0.06887 at press time.
SHIB/USD
SHIB has lost more value than DOGE as its price has dropped by 14.84% over the week.
Despite the sharp fall, SHIB has bounced off the mirror level at $0.00001297. If nothing crucial changes by the end of the day, one can expect a local correction to the $0.000014 zone soon.
SHIB is trading at $0.00001318 at press time.
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