Avalanche Stuck In A Range, Potential Shift Ahead If This Occurs
The price of Avalanche (AVAX) has shown positive momentum, but it remains range-bound. In the past 24 hours, the altcoin saw a 1.8% increase. However, on the weekly chart, it has retraced all its gains due to the lack of significant movement within the range.
AVAX is struggling to surpass the $14 level, which has historically acted as a significant resistance. If AVAX manages to break above this resistance level, a rally is possible. However, the price movement of AVAX is closely tied to Bitcoin’s performance, as other altcoins have exhibited similar patterns.
If Bitcoin drops to the $31,000 range, AVAX might find surpassing the $14 mark challenging. From a technical perspective, the outlook for AVAX favors the bulls, but the momentum is not particularly strong.
Demand and accumulation indicators suggest that buying strength is slowly increasing. The market capitalization of AVAX has seen growth, which is a positive sign. However, if Bitcoin starts retracing on its chart, AVAX could turn bearish.
Avalanche Price Analysis: One-Day Chart
As of the time of writing, AVAX was trading at $13.30. The altcoin recently formed a lower high at this level, indicating a resistance point. The immediate resistance level for AVAX is slightly higher at $13.90. The price needs to break above this resistance to initiate a rally and surpass the $14 mark.
However, before reaching $13.90, AVAX might encounter another resistance level of around $13.40. The coin must sustain trading above these levels for a considerable period to gain significant upward momentum.
On the downside, support is seen at $13. If the price falls below this support level, it may decline to $12.80, invalidating the bullish scenario.
Technical Analysis
Following the bounce from the $13 support level, AVAX has seen an increase in buying interest. The Relative Strength Index (RSI) is slightly above the 50-mark, suggesting that sellers have temporarily retreated and buyers are gaining control.
Additionally, AVAX has moved above the 20-Simple Moving Average (SMA) line, indicating a return of demand and that buyers are currently driving the price momentum in the market.
AVAX has shown continued buying strength, with buy signals forming on the daily chart. The Moving Average Convergence Divergence (MACD), which measures price momentum and shifts, has displayed green histograms associated with bullish signals.
This suggests a positive momentum and potential upward movement in the price. The Bollinger Bands, which measure price volatility and fluctuations, have opened up and moved upwards, indicating that the price may attempt to rise on the upside.
Read more: https://www.newsbtc.com/avalanche/avalanche-stuck-in-a-range-potential-shift-ahead-if-this-occurs/
Text source: NewsBTC
