Warning Signs of a Downtrend in Avalaunch (AVAX) - Head and Shoulders Pattern Emerges
📉 Avalaunch chart pattern:
An important signal has caught my eye in the Avalaunch (AVAX) charts that warrant your attention. The Head and Shoulders pattern has unmistakably surfaced on the four-hourly chart, indicating a potential shift in AVAX's recent upward trend. This pattern, marked by a higher head between two lower shoulders, traditionally hints at a transition from bullish to bearish sentiment.
💡 Status of Head & Shoulder:
After the completion of the pattern, it has offered a downside breakout as indicated by a breakout of the neckline. Further, the price has retested the breakout of the neckline. So strong bearish trend may kick in anytime.
⚠️ Exercise Caution:
While technical patterns offer valuable insights, it's crucial to approach the situation with caution. The cryptocurrency market is dynamic, and unforeseen factors can influence trends. Keep a close eye on the price movements, employ effective risk management strategies, and stay updated on real-time market dynamics.
🚨 Guidance for Traders:
After this clear sign for trend reversal, it is advised to reduce your Longside trade positions or at least trail an optimized stop loss.
Selling short $AVAX at current levels can offer a handsome early bird's advantage.
