The resistance level of 48 USD holds the key for Avalanche's next big move.
The Stochastic indicator warns of overbought levels for AVAX.
At the time of reporting, Avalanche [AVAX] is priced at 45.28 USD, reflecting a 3.60% increase in the past 24 hours.
Market capitalization reached 18.53 billion USD, with a 24-hour trading volume of 827.93 million USD.
In the past day, AVAX has fluctuated from a low of 43.37 USD to a high of 45.95 USD.
Although this token has made significant progress recently, the all-time high of 146.22 USD achieved on November 21, 2021, remains distant, marking a 68.89% decline from that peak.
The resistance level of 48 USD stands in the way
Avalanche has shown volatile performance in 2024, starting the year with a slight decline before peaking for the year in March at 65.26 USD.
This peak marks a strong start to the year, driven by bullish sentiment and increased activity.
However, from March onwards, AVAX experienced a significant decline, losing 72% of its value and reaching a yearly low of 17.72 USD on August 5.
Avalanche/USD US 1D | Source: Tradingview
After the August lows, AVAX began a strong recovery phase, increasing by 167% to the current level of 44.83 USD. In September, the token established higher highs, signaling a shift in market sentiment.
Currently, AVAX is testing the resistance level of 48 USD. Breaking through this barrier could pave the way for a price rally towards the old level of 65 USD and potentially 100 USD.
Is a short-term correction coming?
The Ichimoku Cloud indicator shows a bullish trend at the time of writing, with the Tenkan-sen line (blue line) and Kijun-sen line (red line) providing short-term support at 44.27 USD and 42.25 USD, respectively.
The upward trend is supported by increasing accumulation, as the Accumulation/Distribution index shows an upward trend at 22.82 million units. The Stochastic indicator shows AVAX entering overbought territory, with the green line at 83.40 crossing above the orange line at 75.89.
Avalanche/USD US 4H | Source: TradingView
This suggests there may be a slowdown or slight correction in the short term.
AVAX is in a bullish phase with strong support levels, but overbought conditions may lead to short-term corrections before continuing the upward trend.
Traders should monitor levels of 44 USD and 42 USD for support during any correction phases.
Increased volume supports the return of AVAX
Data from IntoTheBlock shows that AVAX trading volume peaked at 800 million USD in May and June, pushing the price to 43 USD.
By July, both trading volumes and prices sharply declined, with AVAX falling into the range of 19 USD to 27 USD.
From August to September, spikes in trading volume temporarily supported small price recoveries, although the overall trend remained flat.
Source: IntoTheBlock
October witnessed a spike in trading volume reaching a 7-day peak of 566 million USD, pushing the price of AVAX to 35 USD.
Volume stands at 250 million USD at the time of writing, providing stable support in the mid-30 USD range. Increased activity indicates renewed interest, suggesting potential for future price increases.
AVAX sees an increase in adoption
From March to June, active addresses peaked near 150K alongside the price rising to 61 USD. However, both active addresses and price dropped steadily until August, reflecting decreased network activity and market interest.
In the latter half of 2024, stable active addresses, while new addresses show slight growth, support a gradual price recovery.
Source: Intotheblock
By October, the price reached 47 USD, as addresses with zero balance decreased by 5.52% over seven days, indicating a shift in the flow of funds back into circulation.
This new activity signals a growing market confidence and increasing utility for AVAX.
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