Forecasting Avalanche’s turnaround potential after >10% daily loss

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Over the last four days, Avalanche [AVAX] expedited its bearish volatile break after an expected breakdown from its pennant. The two-week trendline resistance (white, dashed) served as a reliable reversal trigger for the sellers.

Now that AVAX lost the vital $19.7 baseline, the subsequent breakdown over the past day has entailed high selling volumes. At press time, AVAX was trading at $18.03, down by a staggering 10.61% in the last 24 hours.

Source: TradingView, AVAX/USDT

AVAX’s reversal from the $30 zone put it back into a bearish track while it swayed below the basis line (green) of the Bollinger Bands (BB) for the most part.

The bearish pennant alongside the two-week trendline resistance only reinforced the bearish vigor to propel an extended decline below the $19.7 level. 

Meanwhile, the basis line looked south while the Supertrend continually revealed a selling signal. A convincing close below the $17.9 zone can aggravate the ongoing selling spree. In this case, the bears would aim for a price discovery mode to find fresher lows. The potential targets would lie in the $16.5-$17.4 range.

On the other hand, a revival from the $17.9 level could confirm a bullish hammer candlestick. In these circumstances, the buyers would aim to constrict the bearish volatility to test the basis line of BB in the $20.2-zone.

Source: TradingView, AVAX/USDT

The Relative Strength Index (RSI) kept diminishing to reflect a severely oversold position. A plausible revival from these lows could ease the near-term selling pressure.

Also, the buyers must wait for a potential bullish crossover on the MACD lines to gauge the