After several gains in the past weeks, Avalanche continues to show signs of strength as it recently marked another multi-week high. It is now looking for a solid rebound level after losing 5% today.
Avax extended its bullish rally this week and marked a multi-week high at $21.7 on Thursday. Things are looking more interesting on the weekly scale, with no sign of a strong reaction from the bears’ side.
The picture is getting bigger and clearer daily as the market continues to rally in favor of the bulls. Avax is technically moving out of the bear cycle and, at the same time, poses for a bull run.
Meanwhile, the price needs to retrace well to facilitate a healthy correction. Going forward, a significant increase above the current trading level – $20 – will validate a complete reversal.
If a correction fails to occur – just like what we saw in the early 2022 bull run – the V-shape pattern may further rally the price upward until buying pressure fades.
However, the rally looks parabolic but seems to be reaching an exhaustion point where a sudden sell-off could occur soon. The inverted hammer candle, which brought the price to a daily close of $21.21 on Thursday, looks dicey with a formed double-top. It is essential to pay close attention to a potential retracement.
Avax’s Key Level To Watch Out For
If Avax can find a rebound at $20, it could revisit the multi-month high before rising to the $22.79 and $23.7 resistance levels in the next rally.
It will most likely trap a lot of long traders if the price drop below the current weekly low of $18.7. Such a scenario may drag the price lower to $17.46 and $16 in the long run.
While the $10.55 support lies as the last defense line for the bulls, it remains a key breakdown level for a fresh decline.
Key Resistance Levels: $21.8, $22.79, $23.7
Key Support Levels: $20, $17.46, $16
- Spot Price: $20
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: moxumbic/123RF // Image Effects by Colorcinch
