AVAX Price Tests Three-Month Lows; Is Reversal In Offer?

AVAX price remains on tough ground falling more than 40% in the April series. The price started the series on a lower note and continued to drift lower indicating the ignorance of the AVAX buyers. The recent downswing pushed it towards a long-standing support zone formulating a make or break zone.

AVAX price fell for the third straight session on Saturday.
A reversal is expected in the extreme oversold market conditions as the price approaches January lows.
But the downside risk is still intact upon a daily candlestick below $60.0.

As of writing, AVAX/USD is trading at $60.41, down 4.72% % for the day. The 24-hour trading volume of the cryptocurrency is standing at $499,944,037 as updated by the CoinMarketCap.

 AVAX price trades near an inflection point

AVAX price dropped considerably as the April session begins. After tagging the highs of $104.0 on April 2. The price booked 42% depreciation. Further, looking at the daily chart, we found AVAX has been consolidating in a short-term trading range of $106 and $60 with both sides capped. The price constructed a reliable support zone around $60.0 extending from January 22 to April 30.

As per the previous pattern, with a resurgence in the buying momentum, the price could jump back to the 50-day EMA (Exponential Moving Average) at $78.09. Furthermore, an extended buying could bring $90.0 into play.

On the flip side, if the AVAX price failed to sustain the session’s low on weekly basis, there is a strong chance of the continuation of the prevailing trend. In such a case, AVAX price could fall to the lows of $54.0 last seen in October.

Technical indicator

RSI: The Relative Strength Index (RSI) approaches the oversold zone falling from the average line. The extreme oversold market condition could result in a bounce-back in the price.