Avalanche (AVAX) has been trading inside the descending channel for the past few days. The price broke below the moving averages on Feb. 20 but the bulls reclaimed the level on Feb. 25, indicating strong buying at lower levels. The bulls will now attempt to push the price to the downtrend line of the descending channel. This is an important level to watch out for because a break and close above it will indicate a possible change in trend. The AVAX/USDT pair could first rally to $100 and thereafter start an up-move to $120. Alternatively, if the price turns down from the downtrend line, the pair could drop to the moving averages. If the price rebounds off this level, the possibility of a break above the channel increases. This bullish view will invalidate if the price turns down from the current level or the overhead resistance and breaks below $70. The price has been trading between the overhead resistance at $83 and the moving averages. The 20-EMA is flattening out and the RSI is near the midpoint, indicating a balance between supply and demand. This balance will shift in favor of the bears if they pull the price below $76. The pair could then drop to the next support at $73. Alternatively, if the price rebounds off the current level and breaks above $83, the pair could pick up momentum and rally to the overhead resistance zone at $97 to $100.
January 6, 2022
Avalanche’s (AVAX) sharp rally to the all-time high at $147 had pushed the RSI near the 85 level, indicating that the up-move was overextended in the short term. This may have resulted in profit-booking by short-term traders. The bears pulled the price below $81 for three consecutive weeks but they could not sustain the lower levels as seen from the long tail on the candlesticks. This indicates that bulls have flipped the previous resistance at $81 into support. The strong rebound off the 20-EMA ($73) indicates that sentiment remains bullish and traders are buying on dips. The bulls will now attempt to push the price to the all-time high at $147. A break and close above this resistance could start the next leg of the uptrend. The AVAX/USDT pair could then rise to $213.17 and if the momentum sustains, the rally could even extend to $260. This bullish view will invalidate if the price turns down from the current level or the overhead resistance and breaks below $75.50. Such a move will indicate that the sentiment has turned negative and traders are selling on rallies. The pair could then drop to the strong support at $50. Such a deep fall is likely to delay the start of the next leg of the up-move.
November 12, 2021
After trading near the overhead resistance at $79.80 for the past three days, Avalanche (AVAX) has broken above the barrier. This indicates the possible resumption of the uptrend. The rising moving averages and the RSI in the overbought territory indicate that bulls are in control. If the price sustains above $79.80, the AVAX/USDT pair could rally to $93.04 and then try to challenge the psychological level at $100. Contrary to this assumption, if the price turns down from the current level and dips back below $79.80, it will suggest that markets have rejected the higher levels. The pair could then drop to the 20-day EMA ($69.51). The 4-hour chart shows the formation of a rounding bottom pattern which completed on a breakout and close above $79.80. If bulls sustain the price above $79.80, the pair could start its northward march toward the pattern target at $108.56. The first important level to watch on the downside is $79.80. A bounce off this level will indicate that bulls are aggressively buying on dips and that will increase the likelihood of the resumption of the uptrend. Conversely, a break below $79.80 could sink the pair to $72. A break below this support will suggest that bears are back in the game.
September 24, 2021
Avalanche (AVAX) bounced back sharply from the 20-day EMA ($56.34) on Sept. 22, suggesting that the sentiment remains positive and traders are buying on dips. The buyers have pushed the price above the overhead resistance at $66.24, increasing the possibility of a retest of the all-time high at $76.27. A breakout and close above this resistance will signal the resumption of the uptrend. Contrary to this assumption, if the price turns down from the current level or the overhead resistance, it will indicate that higher levels are attracting profit-booking. The bears will then make one more attempt to sink the price below the 20-day EMA. If they succeed, the AVAX/USDT pair could start a deeper correction to $48 and then to the 50-day SMA ($40.49).
August 20, 2021
Avalanche provides decentralized asset trading which anyone can launch and use, and does so with a network which is unique in the digital realm in providing subsecond transaction confirmations. Developers aim to bring together the huge, fragmented and often opaque world of asset trading under one roof, allowing barrier-free access. Developers can create and release all manner of entities from blockchains to digital representations of any asset, and allow them to trade according to any given parameters. These include, for example, mimicking compliance regulations in various jurisdictions. The AVAX token forms the in-house payment method for Avalanche, and is used for fee collection during transactions, as well as for incentives and related purposes. Users can also earn passive income by staking their coins on the network.
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