Avalanche (AVAX) is gaining today as it seeks to retain its profits in the previous day. Its volume of trading is up by over 18 percent today, possibly sustaining its value recovery attempt.
It’s worth noting that, Avalanche (AVAX) entered the 30 days of May with a positive tendency momentum currently worth $16.66 on May 1, 2023. Nonetheless, the bears have kept AVAX’s price at $14 since May 18.
It now approaches the $15 price level seeking to rediscover its positive price form. The increased volume of trading today suggests that more activities are ongoing on the network.
This surging interest in the network can potentially help Avalanche (AVAX) sustain its uptrend. A return to $21 remains likely for the investment in the long term.
Avalanche (AVAX) Price Moves
Avalanche (AVAX) is gaining today, forming a higher high on the daily chart. The bulls are intent on mounting a recovery rally. Nonetheless, the bears are still active in the market.
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Since Avalanche (AVAX) still trades below its 50-day and 200-day Simple Moving Averages (SMA), the investment will likely see a further price decline in the short and longstanding. The SMA’s display sell indicates prompting traders to take short positions in the market today.
Nonetheless, some indicators are pointing to a price recovery for Avalanche (AVAX) soon. For example, the Relative Strength Index (RSI) is 38.53 and next to the oversold region.
The RSI indicator mirrors the bearish tendency that began on May 18, 2023, but the indicator is moving upwards, hinting at a potential tendency reversal for the asset.
Despite the fact that the AVAX’s Moving Average Convergence/Divergence (MACD) is just breaking over its signal line and showing intersection, its histogram bars display small green bars hinting at a potential tendency reversal to the upside.
A close look at the chart structure shows that Avalanche (AVAX) entered a downtrend on April 19, 2023. On the other hand, it found support on May 22, sparking hope for a price recovery.
What’s Ahead For Avalanche?
Avalanche (AVAX) has found valuable support at the $14.29 price level, a pivot point for the investment. It is as of now trading over its closest resistance level of $14.29. Nonetheless, the bears are still active in the market, intent on keeping it below the following resistance level of $15.21.
From historical price behavior, Avalanche (AVAX) pivoted on the $14.29 support on March 11, 2023, rallying to $21.29 on April 18, with dips in between. It replayed the same action on May 22 and will likely rally once more to the $21 price level in the longer time frame.
Note that cryptocurrency assets are volatile and can deviate from historical price action. This is why sound technical and fundamental analysis is essential for trading.
Featured image from Pixabay and chart from Tradingview.com