Avalanche Breaks Out of Resistance Trendlines
The Avalanche (AVAX) price has recently broken out of both long-term and short-term descending resistance trendlines. Although it is still trading below the $10.80 long-term resistance, it has successfully cleared the $9.80 resistance.
Avalanche Moves Above Long-Term Resistance
On the daily timeframe, technical analysis reveals that the AVAX price has been following a descending resistance trendline since April, reaching a low of $8.61 in September. However, it began an upward movement and broke out of the trendline in October after being in place for 165 days. As a result, AVAX has seen a 25% increase since then.
Recently, AVAX reached a high of $10.78, breaking through the $10.80 horizontal resistance area for the first time since August.
Avalanche Price Increase Accelerates with Stars Arena Launch
The increase in Avalanche’s price gained momentum after the launch of Stars Arena, a SocialFi platform built on the Avalanche blockchain. Stars Arena is a fork of Friend.tech, a similar platform that has faced phishing issues recently.
The daily RSI supports the ongoing increase, as it is currently above 50 and moving upwards. The RSI is used by traders to identify overbought or oversold conditions and make decisions regarding asset accumulation or selling.
AVAX Price Prediction: Will It Breakout Above $11?
An analysis of the six-hour timeframe confirms the breakout seen on the daily chart. AVAX broke out of a descending resistance trendline on September 25, initiating the current upward movement. It also surpassed the $9.80 resistance during this increase and validated it as support on October 7.
The six-hour RSI also indicates a bullish trend, with readings above 50 and an upward movement. If the upward movement continues, there is a possibility of a 16% increase in AVAX’s price, reaching the $12.30 horizontal and Fibonacci resistance area.
Risks of Retracement and Loss of Momentum
However, there is a potential risk of an 8% retracement to the $9.80 horizontal support area if there is a sudden loss of momentum. The six-hour RSI is approaching overbought territory, which could trigger such a drop.
Hot Take: Avalanche Breaks Resistance Trendlines, Gaining Momentum with Stars Arena Launch
The Avalanche (AVAX) price has successfully broken out of both long-term and short-term descending resistance trendlines. This breakout has been accompanied by the launch of Stars Arena, a SocialFi platform on the Avalanche blockchain. AVAX has seen significant increases in price and has the potential to break above $11 in the near future. However, there are risks of retracement and loss of momentum that could lead to a temporary drop in price. Overall, AVAX’s recent performance and developments indicate positive momentum and growth in the cryptocurrency.
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