AVAX Enters Critical Support Zone at $24: Experts Predict Potential Surge to $40
Avalanche (AVAX) is currently hovering near a crucial support level of $24, and technical indicators suggest the possibility of a reversal in the bearish momentum.
For some time now, AVAX has been oscillating around this price point. However, analysts anticipate a breakthrough above $28, which could potentially trigger significant buying pressure.
Despite the high volatility associated with cryptocurrencies, experts believe that if AVAX manages to surpass the $28 mark, it could surge towards $40 in the short term.
Upon conducting technical analysis, it becomes evident that AVAX is still in a bearish trend, with its price action below the 20-day Simple Moving Average (SMA) at $26.81. Presently, AVAX is trading at $24.15.
The asset is nearing the oversold region, close to the lower Bollinger bands at $23.98, indicating the presence of bearish pressure. Breaking above the 20-day SMA could serve as a bullish signal. However, confirmation is required to sustain the upward movement.
According to the Relative Strength Index (RSI) indicator, the current reading is 37.54. This level suggests weak bearish momentum and is approaching the oversold range, typically below 30. A move above the 50-level for the RSI could signify a positive trend. Notably, AVAX faces resistance at the 20-day SMA ($26.81) and the upper Bollinger Band ($29.63), potentially impeding any upward price movement.
An analyst named Ak47 on Twitter highlights the consolidation of AVAX around $24 as a potential setup for its next upward move. The key resistance level is $28, and surpassing it could pave the way for a price surge, with a short-term target of $40 in mind.
Ak47 further emphasizes that AVAX has previously reached the $40 price level, lending credibility to it as a reasonable take-profit target. The analyst also mentions the formation of a descending triangle pattern on the chart, stating that an upside breakout would signal a trend reversal.
Should AVAX maintain a position above $24 and exhibit bullish tendencies, the anticipated breakout of this pattern could drive prices towards Ak47’s target of $40. However, failure to breach the $28 resistance could result in further consolidation or potentially a breakdown below the $24 level.
Traders and analysts are advised to closely monitor volume spikes and shifts in the RSI, as these could unveil the direction of AVAX’s next significant move.