20% Rally Possible For Avalanche If It Surpasses This Key Resistance Level
April 18 2023 - 7:00AM
NEWSBTC
Over the past few weeks, Avalanche has made an impressive recovery
in its price. Last week alone, AVAX surged by 20%, and on the daily
chart, it showed over 4% appreciation. Despite facing a significant
decline last month when its price dropped to $14, AVAX managed to
rally by almost 50%. The technical analysis of the asset has
pointed to significant bullishness, with buying strength increasing
considerably. As demand moved up, so did accumulation. Currently,
Avalanche is sitting underneath a crucial resistance level. If it
manages to surpass this level, the altcoin could attempt another
rally. Related Reading: Binance Coin (BNB) Rallies 8% Ahead Of Hard
Fork Upgrade However, with Bitcoin still hovering below the $30,000
price mark, most altcoins are also resting under crucial resistance
levels. If BTC continues to face downward pressure in the coming
days, it could potentially trigger a pullback in AVAX’s price,
which could create shorting opportunities for investors. The market
capitalization of AVAX also appreciated which indicated an increase
in buyers at press time. Avalanche Price Analysis: One-Day Chart At
the time of writing, AVAX was trading at $21.40 and had
successfully surpassed a crucial resistance level of $21,
demonstrating bullishness on its chart. The next major overhead
resistance for the altcoin is at $21.60, which has been a
multi-month ceiling and is a vital resistance point, given the
significant volume of sell orders in that zone. This area is known
as a supply zone, and if AVAX manages to break through it, the
price could potentially surge past other resistances and reach $25.
However, if the altcoin fails to overcome this resistance level, it
may face a pullback. The support level for AVAX currently stands at
$19.60. A drop below that could drag the price down to $16.
Technical Analysis Following AVAX’s successful trading above the
$21 price mark, buyers have gained confidence, driving the
altcoin’s price momentum in the market. The Relative Strength Index
(RSI) was nearing 80, indicating overbuying tendencies and
suggesting that the altcoin was overvalued at the time of writing.
Typically, an overvalued asset experiences a price pullback. If a
pullback were to occur for AVAX, it could briefly fall to $20
before experiencing another appreciation in value. In line with
increased demand, the altcoin has moved above the 20 Simple Moving
Average line, indicating that buyers are driving the price momentum
in the market. AVAX has been exhibiting bullish indicators that
suggest a potential buy signal for the altcoin. The Moving Average
Convergence Divergence (MACD) formed green signal bars, which are
typically associated with buy signals. This further indicates
positive price momentum for AVAX. Related Reading: OKB Tallies 24%
Increase But Active Addresses Fail To Keep Pace – Here’s Why
Additionally, the Bollinger Bands, which indicate volatility and
price fluctuation, have opened up widely. This suggests that the
altcoin could experience significant price movement and volatility
over the next few trading sessions. Featured Image From UnSplash,
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