- Avalanche price snaps two-day winning streak, fades early-week recovery from key support line, 50-day EMA.
- Flat RSI, weak MACD and sustained trading below 200-day EMA attract AVAX bears.
- AVAX/USD bulls should seek $27.00 breakout to confirm ruling.
Avalanche (AVAX/USD) drops to a new intraday low near $23.40 ahead of Thursday’s U.S. session, snapping a two-day winning streak. This decline also challenges the AVAX/USD pair’s early-week rebound from both a seven-week-old ascending support line and the 50-day Exponential Moving Average (EMA).
That said, the AVAX pullback comes as buyers failed twice in May to overcome the 200-day EMA resistance.
Additionally, the 14-day Relative Strength Index (RSI) remains flat, while the Moving Average Convergence and Divergence (MACD) indicator shows bearish momentum. Together, these factors suggest that Avalanche may revisit key downside support levels, drawing increased attention from sellers.
AVAX/USD: Daily chart signals rising bearish interest
Source: Tradingview
AVAX is pulling back after failing to extend its recovery from the upward-sloping support line from early April and the 50-day EMA, located near $23.00 and $22.40 respectively. The retreat is supported by RSI hovering around the neutral 50 level and bearish MACD signals, indicating ongoing downside pressure and potential attempts to break these key support levels.
If the AVAX/USD pair breaks $22.40 support, the $22.00 round figure could act as the last major defense for buyers before the price slides toward the previous weekly low near $21.30, the psychological $20.00 mark, and then the monthly bottom at $19.10.
A sustained drop below $19.10 could expose the AVAX price to further losses, potentially reaching the March low of $15.35 and the yearly low from April, around $14.65.
On the flip side, the 200-day SMA and a horizontal resistance zone formed since early February—around $25.70 and $27.00—remain major hurdles for AVAX bulls.
If the AVAX/USD pair manages a daily close above $27.00, it could open the door for a potential rally toward the $30.00 psychological level.
