AVAX Rests on Key Support, Will It Break Out or Break Down?

AVAXUSDT managed to surpass the resistance level at $37.15 within the last few days. Following this breakthrough, its price has been experiencing a consolidation phase. However, it appears that traders are currently selling off their AVAX holdings as the coin approaches a support level.

If AVAX fails to maintain a daily closing price above $37.15 within the next 48 hours, it could potentially decline to as low as $27 in the coming week. Conversely, if AVAX manages to stay above the $37.15 mark, there is a possibility of the cryptocurrency's price ascending towards the resistance level of $52.60 in the short term.

The technical indicators observed on AVAX's daily chart suggest a potential price drop in the upcoming days. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators are currently displaying bearish signals.

The MACD line is approaching the MACD signal line, which could indicate a reversal towards a bearish trend for AVAX if these two lines intersect. Additionally, the RSI line recently dipped below the RSI Simple Moving Average (SMA) line in the past few days, signaling that sellers are gaining an advantage over buyers.