Avalanche: Mapping entry triggers to achieve optimal Risk-to-Reward ratio

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

As the buyers strived to alter the trend to their fancy, the reversal from the $30-ceiling restored the selling pressure. As a result, Avalanche [AVAX] tumbled below its 20, 50/200 EMA to witness a robust bearish resurgence.

Here’s AMBCrypto’s price prediction for Avalanche [AVAX] for 2023-24

In quest of finding newer lows, the alt outlined a two-month trendline resistance (white, dashed). The bears could now aim to expedite their edge should the recent patterned break fail to find reliable grounds.

At press time, AVAX was trading at $15.16, down by nearly 5% in the last 24 hours.

Source: TradingView, AVAX/USDT

AVAX’s previous bull run halted at the $30-level after exponential gains from its 10-month lows in July. The subsequent reversal from this ceiling noted a rising wedge breakdown in the four-hour timeframe.

While the two-month trendline resistance constricted the buying efforts, for the most part, AVAX marked an expected descending triangle breakdown, one that spurred an over 5% loss in just the last two days. 

Meanwhile, the 20 EMA (red) and 50 EMA (cyan) looked south while unveiling the underlying selling edge. After a relatively high volatile move over the last two days, AVAX has entered a low liquidity zone at press time. This makes the coin more fragile to substantial movements in the coming sessions. 

After breaking down from its bearish pennant, an inability to jump above the immediate trendline resistance can position the alt for a downside.

A close below the $15.3 baseline would confirm the chances of an extended downside. In these circumstances, the sellers could look to test the