June has been a devastating month for crypto traders. But regardless of this, we’re seeing some restoration as main cash construct modest upward momentum. AVAX isn’t any totally different, and the coin has now managed to reclaim an necessary support zone after crashing in June. So, the place will it go subsequent? Is the rally short-lived or everlasting? Here are some highlights:
AVAX had crashed almost 65% in June alone.
However, the coin has rallied up to now two days with a 15% acquire in 24 hours.
More importantly, AVAX has reclaimed the $14 support.
Data Source: TradingView
Where will Avalanche go from right here?
Well, there are various situations at play right here. First, the rally now we have seen by AVAX over the previous two days corresponds to a broader restoration out there. This may counsel that maybe we had been seeing a short-term reduction after large sell-offs final week. If that’s the case, then AVAX may lose upward momentum very quick.
The excellent news although is that the coin is now buying and selling above the $14 mark. For probably the most half in 2022, this support has held sturdy even within the face of large bear stress. So, even when the coin was to drag again from its present 2-day rally, the bulls could have a greater probability of defending the $14 mark than they did every week in the past.
However, failure to maintain $14 may mark the start of a serious decline for AVAX. In truth, after $14, the one different actual support is at $10.70.
Why AVAX nonetheless poses main dangers?
Despite rising above the $14 mark, we nonetheless see main dangers with AVAX. First, the coin has up to now few weeks struggled to maintain the momentum going above $20.
As such, we anticipate it to start dropping momentum because it strives towards $20. This may result in a pointy pullback that ultimately places the $14 support beneath actual risk.
