Resumption of Positive Trend for Avalanche (AVAX)
Recently, the price of Avalanche (AVAX) has shown signs of resuming a positive trend by breaking above the 50-day SMA. Despite this breakout, the presence of doji candlesticks has somewhat limited the upward movement of the altcoin. This development follows a period where AVAX was trading within a tight range between the 21-day SMA support and the 50-day SMA resistance, fluctuating between $26 and $30. Currently, Avalanche is valued at $29.16.
Analysis of Avalanche Price in the Long-Term
If buyers can sustain the bullish momentum above the 50-day SMA support, AVAX is likely to push towards its next resistance level at $34. However, should the altcoin drop below the 50-day SMA support, it is expected to continue trading within the $26 to $30 range due to resistance levels. Additionally, the current price movement indicates that the altcoin is facing resistance above the 50-day SMA support, with downward slopes in the 21-day and 21-day SMAs.
Technical Indicators:
- Major Resistance Levels – $60 and $70
- Major Support Levels – $30 and $20
The Future Direction of Avalanche
Looking at the 4-hour chart, Avalanche seems to be moving higher above the moving average lines, with the uptrend facing resistance around the $29 mark. Currently, the altcoin is trading sideways within the $25 to $28 range, with a slight downtrend observed as it struggles to break the $29 resistance level. Given the current market conditions, AVAX is likely to continue declining.
Hot Take: Avalanche’s Price Outlook
As Avalanche (AVAX) showcases a resumption of a positive trend by breaking above the 50-day SMA, the altcoin faces resistance from doji candlesticks. Although buyers have managed to push the price above the 50-day SMA, constraints from selling pressure have hindered further upward movement. It remains imperative for AVAX to sustain bullish momentum to reach the $34 resistance level. However, failure to do so may result in continued trading within the $26 to $30 range. Technical indicators suggest a resistant market environment, with key levels of support and resistance identified. Looking ahead, Avalanche’s price direction hinges on the ability of buyers to overpower bearish pressure and propel the altcoin towards higher price levels.
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