29 June 2024
Avalanche (AVAX) has recently shown a strong correctional upswing, sparking renewed interest among investors and traders. This upward momentum comes after a rejection at $23.49 and indicates a potential challenge to the $30.34 resistance level.
As AVAX approaches this critical threshold, market participants are closely watching to see if the cryptocurrency can maintain its bullish trajectory and break through the resistance. The $30.34 level is now a focal point, determining whether Avalanche can sustain its rally and continue to climb higher.
This article focuses on the use of technical indicators to examine AVAX’s current price movement to predict potential Scenarios if the price reaches the $30.34 resistance level.
Analyzing Avalanche’s Current Upswing
Currently, on the 4-hour chart, the price of AVAX is actively trading above the 100-day Simple Moving Average (SMA). Although the price tends to be moving in a consolidating manner, there are possibilities that it could extend its upswing.
Also, while the signal line of the 1-day Relative Strength Index (RSI) signals that the price of Avalanche may go bearish, this is just a short-term movement, which at some point, the price may begin to rise again.
Meanwhile, on the 1-day chart, despite still trading below the 100-day SMA, Avalanche is actively bullish as it is attempting a correctional upward movement toward the $30.34 resistance level with consistent momentum.
The formation of the 1-day RSI indicator also confirms this current price bullishness as the signal line of the indicator seems to have moved out of the oversold zone towards the 50% level. Thus, it can be considered that AVAX’s price may undergo a brief pullback before challenging the $30.34 resistance level
Breaking Through Or Facing Rejection At $30.34?
Exploring the possible outcomes of Avalanche, it was discovered that if AVAX’s price reaches the $30.34 resistance level and breaks above, it may continue to rise higher to test the $36.15 resistance level and potentially move on to challenge other higher levels if it breaches this $36.15 level.
However, if the crypto asset faces rejection at the $30.34 resistance, it will begin to decline toward the $23.49 support level. If this level is breached, it may continue to decline to test the $18.81 support level and may move on to test other lower levels following a break below the $18.81 level.
AVAX’s price was trading at around $28.23 and was up by 1.01% with a market capitalization of over $11 billion and a trading volume of over $336 million as of the time of writing. There has been a 24-hour increase of 1.01% in AVAX’s market capitalization and a 3.07% decrease in its trading volume.