Avalanche (AVAX) has been experiencing a significant uptrend, gaining momentum after facing rejection at $23.49. This surge has attracted renewed interest from investors and traders, as it suggests a potential challenge to the $30.34 resistance level. Market participants are closely observing AVAX’s movement as it approaches this critical threshold, as it will determine whether the cryptocurrency can sustain its rally and continue to climb higher.
To analyze AVAX’s current price movement and predict potential scenarios if it reaches the $30.34 resistance level, technical indicators are being used. Currently, on the 4-hour chart, AVAX is trading above the 100-day Simple Moving Average (SMA), indicating the potential for further upward movement. While the 1-day Relative Strength Index (RSI) signals a short-term bearish movement, it is expected that the price will eventually rise again.
On the 1-day chart, AVAX remains bullish as it attempts a correctional upward movement towards the $30.34 resistance level with consistent momentum, despite trading below the 100-day SMA. The formation of the 1-day RSI indicator also supports this bullish outlook, as the signal line has moved out of the oversold zone towards the 50% level. This suggests that AVAX may undergo a brief pullback before challenging the $30.34 resistance level.
Considering possible outcomes, if AVAX’s price breaks above the $30.34 resistance level, it may continue to rise and test the $36.15 resistance level, potentially moving on to challenge higher levels beyond that. However, if AVAX faces rejection at the $30.34 resistance, it could decline towards the $23.49 support level. If this support level is breached, further decline towards the $18.81 support level may occur.
At the time of writing, AVAX was trading at around $28.23, showing a 1.01% increase in price, with a market capitalization of over $11 billion and a trading volume of over $336 million. The 24-hour increase in market capitalization was 1.01%, while the trading volume decreased by 3.07%.
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