Avalanche [AVAX]: Gauging potential hurdles for opening a short position

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

After numerous attempts to crack the $30-resistance in mid-August, Avalanche [AVAX] collapsed below its 200 EMA (green) to mark a robust bearish resurgence.

In pursuit of finding fresher lows, the alt outlined a two-week trendline resistance (white, dashed). The bulls could now aim to constrict the recent bearish volatile break in the coming sessions.

At press time, AVAX was trading at $20.1, down by 2.95% in the last 24 hours.

Source: TradingView, AVAX/USDT

AVAX’s previous bull run slowed down at the $30-level after exponential gains from its July lows. The subsequent reversal over the last two weeks witnessed a bearish pennant over this timeframe.

While the two-week trendline resistance collided with the apex region of the bearish pennant, AVAX marked an expected breakdown, one that evoked double-digit losses over the last three days. Meanwhile, the 20 EMA (red) and 50 EMA (cyan) looked south after a death cross with the 200 EMA. As sellers steered the near-term trend, they would aim to uphold the two-week trendline resistance.

But the buyers have been ensuring the $19.7-baseline for over three weeks now. So, a potential rebound from this support could position the alt for a near-term upside in the coming sessions.

In this case, the potential targets would lie in the $21-$23 range. Then, south-looking EMAs could pose recovery barriers before fueling the bearish edge.

Source: TradingView, AVAX/USDT

The Relative Strength Index (RSI) exhibited a one-sided bearish edge as it entered the oversold mark. A likely revival from these lows could position the altcoin for a near-term recovery.

Also, the Accumu