Avalanche price needs to return to the mid $20 level, or more pain will ensue soon

• AVAX price has lost 40% of market value this month.
• The bears have rejected the bullish attempt to reconquer the $20 price zone.
• Invalidation of the bearish thesis is a weekly close above $24.70.

Avalanche price leaves clues that more decline is imminent. Key levels have been identified.

Avalanche price has seen better days.

Avalanche’s AVAX price has fallen 40% this month as the bears have flexed total control over the Ethereum-based gaming token. Amidst the 40% decline, the bears have managed to prompt additional cues suggesting more downslides will occur in the future.

AVAX price currently auctions at $19.85. The 40% decline enabled the bears to produce a weekly candle thatsettled below an ascending trend line, which has provided support for the Avalanche price throughout the majority of the summer. Additionally, the bears have rejected the intra-day bullish attempt to reconquer the $20 psychological level.

AVAX/USDT 1-Week Chart.

Combined, the AVAX price could be due for more pain. If market conditions persist, a 20% decline targeting the $17.50 barrier will be the next stop on the bears’ path. 

Invalidation of the bearish outlook is a breach and weekly close above the 21-day simple moving average currently positioned at $24.70. If the bulls can hurdle this key barrier level, they may be able to induce a rally targeting the August monthly high at $30.87. This would result in a 60% increase from the current Avalanche price. 

In the following video, our analysts deep dive into the price action of Ripple, analyzing key levels of interest in the market. -FXStreet Team

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