Avalanche (AVAX) price tag has elevated appreciably more than the previous twenty days, peaking previous $forty on February ten.
Avalanche has reversed at a prolonged-phrase horizontal assistance location but is even now trading inside a brief-phrase resistance degree.
Avalanche clears prolonged-standing resistance
Technical evaluation on the weekly timeframe displays that AVAX price tag has elevated immediately after rebounding on January 22. This development has confirmed a essential horizontal location as assistance. Previously, this location acted as a resistance level from May 2022.
AVAX generates a good weekly candle (blue symbol), fueling the latest development. However, costs have not surpassed the 2023 peak regardless of sizeable development.
The weekly RSI displays an unclear signal. Market traders use RSI as a momentum indicator to determine overbought or oversold ailments and choose whether or not to hoard or promote assets.
RSI values above 50 and an uptrend signal that the market place is even now in favor of prolonged traders, though values below 50 indicate the opposite. Although the index is over 50, it has declined more than the previous two months. Furthermore, it crossed the overbought zone and has not returned given that.
AVAX price tag prediction: Gentle recovery or reversal of the upward trend?
The every day periodic chart does not verify the long term trend course for AVAX due to unclear price tag action. The every day chart displays that the price tag boost from January 22 has been confined to an ascending parallel channel. Such channels frequently have corrective movements.
On February ten, the channel's opposing diagonal rejected AVAX price tag (red symbol). Additionally, this rejection coincides with the $forty resistance location.
Despite the rejection, the every day RSI displays an uptrend. The price tag boost took the indicator over the 50 degree and into the good zone. RSI is also trending up.
Cryptocurrency trader InmortalCrypto believes that AVAX price tag will adhere to SOL if SOL increases.
“If SOL increases, AVAX will follow. Muscles remember that,” InmortalCrypto tweeted.
Due to these various pieces of facts, the response to the $forty location will decide the course of the long term trend. A thriving breakout could set off a 23% rally for AVAX, reaching a 2023 higher of $50.
Contrary to that, a rejection from the $forty location and a break from the channel could set off a sixteen% AVAX decline to the nearest assistance at $33.
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