Buyers need some serious catching up on the charts after the recent drop. Avalanche (AVAX) experienced a significant decline in value after breaking out of a rising wedge. The price seems to be moving back to the key area around the $74 mark which represents a confluence of multiple supports. At press time, AVAX is trading at $74.68, down 4.25% over the past 24 hours.
AVAX daily chart
Since hitting the long-lived milestone, Avalanche has lost over 64% of its value and dropped to a 14-week low on Jan 22. On its way up from there, alt tested the resistance of trendline (white) several times until the bulls broke it on March 19.
This bounce has turned out to be profitable for AVAX while the rising wedge setup tested the long-term $98 resistance. Therefore, the 20 EMA (red) has jumped below the 50 EMA (cyan) as the bears hold the current trend.
The $74 mark is extremely important for the bulls to hold to prevent a severe drop in the coming days. An attractive close below this level would be detrimental to all short-term and long-term recovery efforts. On the upside, a likely reversal from this floor could lead to a short-term bounce towards the $77-$79 range.