In the past few days, Avalanche’s AVAX saw a strong increase above the $25 resistance zone. It gained over 50% and broke many hurdles near $30. It even cleared the $40 level before the bears appeared.
A new multi-month high was formed near $43.06 before the price started a downside correction, like Bitcoin and Ethereum.
There was a 15% drop and the price traded below the $38 level. There was a move below the 23.6% Fib retracement level of the upward move from the $21.24 swing low to the $43.06 high.
AVAX price is still trading above $30 and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support near $35.00 on the 4-hour chart of the AVAX/USD.
On the upside, an immediate resistance is near the $38.00 zone. The next major resistance is forming near the $40.00 zone.
If there is an upside break above the $38.00 and $40.00 levels, the price could surge over 10%. In the stated case, the price could rise steadily toward the $45 level.
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Dips Limited in Avalanche?
If AVAX price fails to continue higher above the $38.00 or $40.00 levels, it could continue to move down. Immediate support on the downside is near the trend line at $35.
The main support is near the $32.00 zone or the 50% Fib retracement level of the upward move from the $21.24 swing low to the $43.06 high.
A downside break below the $32.00 level could open the doors for a major decline towards $18.80. The next major support is near the $26.50 level and the 100 simple moving average (4 hours)
Technical Indicators
- 4 hours MACD – The MACD for AVAX/USD is gaining momentum in the bearish zone.
- 4 hours RSI (Relative Strength Index) – The RSI for AVAX/USD is now below the 50 level.
- Major Support Levels – $35.00 and $32.00.
- Major Resistance Levels – $38.00, $40.00, and $45.00.
