Here’s how a near-term revival can play out for Avalanche investors

ambcrypto.com:

After observing an unrestrained up-channel (yellow) rally for over three months, Avalanche (AVAX) poked its ATH on 21 November. Since then, it has been on a decline while losing the vital $79-mark. 

While the 20 EMA (red) refused to show improvement signs and endeavored to jump below the 200 EMA (yellow), AVAX eyed at a continued downtrend in the days to come. Should the price close above its immediate support, that would affirm a hidden bullish divergence and could propel a near-term recovery towards its 20 EMA. At press time, AVAX traded at $67.21.

Source: TradingView, AVAX/USDT

Since attaining its lifetime milestone, AVAX lost more than 64% of its value and plunged towards its 14-week low on 22 January. Since then, it recovered its losses but struggled to challenge its trendline resistance (white).

The recent up-channel (white) breakdown tested the 200 EMA multiple times before testing the $66-support. Also, this support coincided with the trendline support (white, dashed). However, as the 20 EMA attempted to fall below the 200 EMA, AVAX could see a further pullback.

Any close above the $66-support level could propel a near-term recovery before the alt conforms to its long-term bearish tendencies. Also, the price approached near the lower band of the Bollinger Bands (BB), hinting that the price is not yet on the expensive side. This reading also brightened the chances of a pullback before the continued downtrend. The bulls needed to step in at the $66-mark to prevent the occurrence of a major fallout.

Source: TradingView, AVAX/USDT

The RSI has ensured its 39-point base while the price action has been marking lower troughs over the past three weeks. So, a revival from its immediate support would confirm a bullish divergence