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Avalanche (AVAX) Sees Range-Bound Trading as Resistance Looms, Tied to Bitcoin’s Performance

The Avalanche (AVAX) price has displayed signs of positive momentum, although it remains range-bound. Over the past 24 hours, the altcoin witnessed a modest 1.8% increase. However, on the weekly chart, it retraced all its gains due to limited movement within the established range.

AVAX faces a significant hurdle in surpassing the $14 resistance level, which has historically proven formidable. A breakthrough above this resistance could potentially trigger a rally. Nevertheless, AVAX’s price movement is closely linked to Bitcoin’s performance, as other altcoins exhibit similar patterns.

Should Bitcoin experience a drop to the $31,000 range, AVAX may encounter challenges in surpassing the $14 mark. From a technical standpoint, the outlook for AVAX leans towards bullishness, although the momentum is not particularly robust.

Demand and accumulation indicators suggest a gradual increase in buying strength. The market capitalization of AVAX has grown, signalling a positive trend. However, if Bitcoin retraces on its chart, AVAX could turn bearish.

At the time of writing, AVAX was trading at $13.30, forming a lower high at this level, indicating resistance. The immediate resistance lies slightly higher at $13.90, and a breakthrough would be required to initiate a rally beyond the $14 mark.

Before reaching $13.90, AVAX may face another resistance level of around $13.40. The altcoin must significantly sustain trading above these levels to gain substantial upward momentum.

On the downside, support is found at $13. If the price falls below this level, it may decline to $12.80, invalidating the bullish scenario.

Following a bounce from the $13 support level, AVAX has witnessed increased buying interest. The Relative Strength Index (RSI) sits slightly above the 50-mark, indicating sellers’ temporary retreat and buyer control’s emergence.

Moreover, AVAX has moved above the 20-Simple Moving Average (SMA) line, suggesting a return of demand and current buyer-driven price momentum.

Continued buying strength is evident on AVAX, with buy signals forming on the daily chart. The Moving Average Convergence Divergence (MACD), measuring price momentum and shifts, displays bullish signals with green histograms.

These indicators imply positive momentum and potential upward movement in price. Additionally, the Bollinger Bands, measuring price volatility and fluctuations, have expanded and moved upwards, suggesting a potential upward attempt in price.

 

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