Avalanche Price Analysis: AVAX Looks to Retest $42 as Bulls Regain Control
- Susan SarandonOriginal
- 2024-11-08 03:02:09846browse
Technicals point to a potential Avalanche price rally, which could see it rise to the important resistance level at $42, its highest level on May 22.
Avalanche (CRYPTO: AVAX) price焼けた up in the past three days as it attempted to cross the 50-day moving average.
What Happened: The thirteenth-largest cryptocurrency was trading at $27.10, up from this week’s low of $22.75.
Technical traders are watching for a potential move to the upside, which could take AVAX to the key resistance of $42, which was last seen on May 22.
This rally is being signaled by the coin’s strong bounce from the ascending trendline, which connects the higher lows since August 7.
The coin is also attempting to cross the 50-day and 100-day Exponential Moving Averages (EMA), which would indicate that the bulls are regaining control.
Oscillators for AVAX are also beginning to point to the upside, with the Relative Strength Index (RSI) crossing the neutral point of 50.
Both lines of the MACD indicator are pointing upwards and are set to cross the zero line.
A volume-supported move above the resistance of $31 would indicate further gains to the upside towards $42.
Such a rally would mark a gain of 56% from current levels.
On the downside, a drop below the ascending trendline would negate the bullish thesis and signal that bears remained in the market.
If that happens, the AVAX token could drop to the next key support of $17.27, which was the lowest level seen in August.
Some analysts believe that Avalanche could continue to perform well in the coming weeks.
In an X post, CryptoDoc, a popular analyst with 70k followers, said that AVAX was showing signs of a bullish breakout as long as it remained trading between $22 and $26.
What Else Matters: The tokens were part of a deal that saw the foundation sell its crypto holdings to raise funds to pay off its creditors.
The foundation was set up by Terraform Labs, the company behind the collapsed stablecoin and cryptocurrency Luna.
Avalanche said the tokens would be burned, which would reduce the total circulating supply of AVAX.
The price of AVAX has ranged from a low of $16.88 and a high of $37.82 over the past 90 days.
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