Avalanche (AVAX) price is showing positive momentum but remains range-bound. The altcoin is up 1.8% in the past 24 hours. However, on the weekly chart, it has given back all the gains amid a lack of significant movement within the range.
AVAX is struggling to break above the $14 level, which has historically served as an important resistance level. If AVAX succeeds in breaking above this resistance level, a rally could occur. However, AVAX’s price action is closely tied to Bitcoin’s performance as other altcoins are also showing similar patterns.
If Bitcoin falls to the $31,000 range, AVAX may find it challenging to break above the $14 mark. From a technical perspective, the outlook for AVAX favors the bulls, but momentum is not particularly strong.
Demand and accumulation indicators suggest that buying power is slowly building. AVAX has seen growth in its market capitalization, which is a positive sign. However, AVAX could turn bearish if Bitcoin starts to pullback on the charts.
Avalanche Price Analysis: One-Day Chart
As of the time of writing, AVAX is trading at $13.30. The altcoin has recently formed lower highs at this level, indicating a point of resistance. The immediate resistance for AVAX is slightly higher at $13.90. The price needs to break above this resistance to initiate a rally and move above the $14 mark.
However, before touching $13.90, AVAX might encounter another resistance around $13.40. The coin would have to sustain trading above these levels for a considerable period of time to gain significant upward momentum.
On the downside, the support is $13. If the price breaks below this support, it can drop to $12.80, invalidating the bullish scenario.
technical analysis
AVAX has seen increased buying interest after bouncing off the $13 support. The relative strength index (RSI) is just above the 50 mark, suggesting that sellers are temporarily retreating and buyers are gaining control.
Moreover, AVAX has risen above the 20 Simple Moving Average (SMA), indicating that demand has picked up and buyers are currently driving price momentum in the market.
AVAX is showing continued buying power, with a buy signal forming on the daily chart. The Moving Average Convergence Divergence (MACD), which measures price momentum and change, is showing a green histogram associated with a bullish signal.
This indicates that there is positive momentum and a potential uptrend in the price. The Bollinger Bands, which measure price volatility and fluctuations, have opened and moved upwards, indicating that the price may attempt to move higher.