AVAX Targets Next Resistance, Time to Go Long?
The Avalanche (AVAX) price has been undetermined for a few weeks. The altcoin is now seeing gains on the daily chart as it is up over 3% over the period. The coin has been showing signs of optimism since it rallied off the $12.90 support level.
The technical outlook for AVAX showed signs of demand and buy signals for traders. If demand continues to rise and buying sentiment increases in the immediate trading sessions, the chance of AVAX breaking other resistance levels will continue to increase.
As the coin continues to secure higher highs and higher lows, the bulls remain in charge of the asset. However, if AVAX starts consolidating below the $13 price level, the altcoin may see depreciation.
Progressive price momentum calls for AVAX to break the $14.30 resistance level. Once AVAX manages to successfully challenge this level, the bulls will stay longer. the market capitalization The altcoin has already seen an upswing associated with an increase in accumulation.
Avalanche Price Analysis: One-Day Chart
Avalanche was priced at $13.48 on the one-day chart | Source: AVAXUSD on TradingView
The immediate overhead cap, the Avalanche price needs to be broken, was $13.90. This move would provide another rally to $14.60. Once the coin goes above this level, the accumulation will increase significantly.
Traders had numerous entry points into the market; for example, when AVAX collapsed to $12. In the coming trading sessions, investors can see the returns on the chart.
On the other hand, if AVAX starts to consolidate due to lack of demand, the next level for the coin would be at $12.20 and then at $11. This would mean a price drop of 18% for AVAX.
AVAX was trading at $13.48 at the time of writing.
AVAX Technical Analysis
Avalanche noted a small drop in buyers on the one-day chart | Source: AVAXUSD on TradingView
Although the technical outlook indicated positive price action, demand on the daily chart fell slightly. The Relative Strength index (RSI) fell just a little, resting on the half line. Purchasing power and selling power were thus balanced.
However, other indicators are on the side of increased demand. The altcoin was above the 20-day simple moving average when it surpassed the $13.40 price level. This was an indication that buyers were still driving price momentum in the market.
Avalanche buy-signal on the one-day chart | Source: AVAXUSD on TradingView
Although the RSI remains neutral, other indicators have shown that the bulls are still struggling to push the price above $13.60. The Moving Average Convergence Divergence defines the price momentum and trend reversal.
Related reading: Ethereum Active addresses highest since May 2021, good news for ETH?
The MACD underwent a bullish crossover and that meant a buy signal for traders, which could also correlate with an incoming price surge for the coin. The parabolic SAR determines the price direction. The indicator formed dots below the price candle, which suggested an uptrend in Avalanche price.
Source: Crypto News Deutsch