AVAX Price Corrects Lower
The price of AVAX, the cryptocurrency of Avalanche, recently experienced a significant increase, breaking through key resistance levels at $25, $30, and even $40. However, a correction occurred after reaching a multi-month high of $43.06. This correction led to a 15% drop, with the price falling below $38.
Despite the correction, AVAX is still trading above $30 and the 100 simple moving average (4 hours). On the 4-hour chart, there is a bullish trend line forming with support near $35.
Currently, the immediate resistance levels for AVAX are at $38 and $40. If these levels are broken, the price could surge over 10% and potentially reach $45.
Dips Limited in Avalanche?
If AVAX fails to break above the resistance levels at $38 and $40, it may continue to move downwards. The first level of support on the downside is near the trend line at $35. The main support level is around $32 or the 50% Fibonacci retracement level.
A break below $32 could lead to a major decline towards $18.80. The next significant support level is near $26.50 and the 100 simple moving average (4 hours).
Technical Indicators
The MACD for AVAX/USD on the 4-hour chart is showing increasing momentum in the bearish zone. The RSI (Relative Strength Index) for AVAX/USD has dropped below the 50 level.
Hot Take: AVAX Price Correction May Present Buying Opportunity
The recent correction in AVAX price after reaching new highs provides a potential buying opportunity for traders. With the price still trading above key support levels and a bullish trend line forming, there is a chance for the price to resume its upward movement. However, it is crucial to monitor the resistance levels at $38 and $40 as a breakout above these levels could trigger a significant surge in price. On the other hand, a failure to break these resistance levels may result in further downside movement. Traders should closely watch these key levels and technical indicators to make informed trading decisions.
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