Avalanche Rebounds: Eyes $29.35 Breakout And Further Gains
Avalanche (AVAX) has regained traction, showing signs of a potential bullish resurgence as it approaches a key resistance level at $29.35. After a period of consolidation, AVAXs price action hints at a possible breakout, which could trigger a strong upward movement. With technical indicators showing signs of strength, the markets focus now shifts to whether Avalanche can sustain this upward momentum and push past the $29.35 barrier for a sustained move higher.
This analysis aims to evaluate Avalanches recent price rebound and assess whether it has the momentum to break through the key $29.35 resistance level. By examining technical indicators, market sentiment, and price trends, we seek to determine if the token is poised for further gains, setting the stage for a sustained rally in the coming sessions.
AVAXs Strong Bounce: Will Momentum Continue?
Following the bullish comeback at $25, AVAXs price on the 4-hour chart has continued to gain strength to surge toward the $29.35 resistance level. AVAX is also trading above the 100-day Simple Moving Average (SMA), suggesting a positive upward trend that could lead to a potential breakout.
An analysis of the 4-hour Relative Strength Index (RSI) reveals that the signal line has risen above the 50% mark and is currently sitting at 74%, indicating strong bullish momentum. As long as the RSI remains elevated and buyers maintain control, the asset could experience additional gains with the possibility of reaching new highs.
Additionally, the daily chart illustrates that AVAX is showcasing a significant upward push, characterized by a positive candlestick pattern following its rebound above the 100-day SMA. The asset is currently attempting to breach the critical resistance level at $29.35. Successfully overcoming this barrier would reinforce the prevailing upward trend and boost market sentiment, signaling heightened buying interest.
Finally, on the 1-day chart, a detailed examination of the RSI formation indicates that Avalanche may maintain its optimistic trajectory. The indicators signal line after dropping to 44% is rising again and is currently positioned at 59%, indicating that buying pressure could remain strong and potentially drive further price appreciation in the near term.
Whats Next For Avalanche If $29.35 Is Breached?
If Avalanche successfully breaches the critical resistance level of $29.35, it could set the stage for a significant rally toward the $42 resistance mark. A breakout above this level could lead to a series of upward targets, pushing the price toward new highs as market confidence grows.
However, if Avalanche fails to maintain this strength and breaks above the $29.35 resistance level, it could result in a pullback, with the price sliding back toward the $18.85 support zone. A breakdown below this level could lead to more losses, possibly targeting lower support areas.
Read more: https://www.newsbtc.com/analysis/avax/avalanche-eyes-29-35-breakout/
Text source: NewsBTC
