Avalanche (AVAX) has been on a strong upward trend recently, following a correctional upswing that has caught the attention of investors and traders. This surge comes after a rejection at $23.49, setting the stage for a potential challenge at the $30.34 resistance level.
As AVAX inches closer to this crucial threshold, market participants are eagerly observing to see if the cryptocurrency can uphold its bullish momentum and break through the resistance. The $30.34 level now holds the key to determining whether Avalanche can sustain its rally and push even higher.
This article delves into the utilization of technical indicators to analyze AVAX’s current price action and forecast potential scenarios once the price reaches the $30.34 resistance level.
Analyzing Avalanche’s Current Upswing
At present, the 4-hour chart shows that the price of AVAX is trading above the 100-day Simple Moving Average (SMA). Although the price movement appears to be consolidating, there are indications that it could extend its upward trajectory.
Additionally, the 1-day Relative Strength Index (RSI) signal line suggests a short-term bearish movement, but this could be temporary, with a potential for the price to resume its upward trend.
On the 1-day chart, despite trading below the 100-day SMA, Avalanche is displaying bullish momentum as it aims for a correctional upward movement towards the $30.34 resistance level with consistent strength.
The formation of the 1-day RSI indicator further confirms the current bullish sentiment, as the signal line has moved out of the oversold zone towards the 50% level. This hints that AVAX’s price might experience a brief pullback before attempting to breach the $30.34 resistance level.
Breaking Through Or Facing Rejection At $30.34?
When exploring the possible outcomes for Avalanche, it is evident that a successful breach of the $30.34 resistance level could propel the price higher to test the $36.15 resistance level. Subsequently, AVAX might continue on an upward trajectory to challenge even higher levels if it surpasses the $36.15 mark.
Conversely, if the crypto asset encounters rejection at the $30.34 resistance, it could see a decline towards the $23.49 support level. A breach of this support could lead to further downside movement, testing the $18.81 support level and potentially lower levels post-breakout below $18.81.
As of the time of writing, AVAX was trading around $28.23, marking a 1.01% increase. The cryptocurrency boasts a market capitalization exceeding $11 billion and a trading volume surpassing $336 million. Over the past 24 hours, AVAX has seen a 1.01% rise in market capitalization and a 3.07% decline in trading volume.
In conclusion, Avalanche’s journey towards the $30.34 resistance level is met with anticipation and uncertainty, with market participants eagerly awaiting to see if the cryptocurrency can maintain its bullish stance or face a rejection at this critical juncture. As the price action unfolds, investors and traders will closely monitor AVAX’s movement to gauge its future trajectory.
Disclaimer: The information provided in this article is for educational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research and consult with a financial advisor before making any investment decisions.