In the dynamic world of cryptocurrency, AVAX, Avalanche’s native token, has recently displayed a noteworthy performance, surging over 10% and soaring past the $45 level. This ascent positions Avalanche as one of the market’s front-runners, rapidly approaching a challenge of the pivotal $50 resistance domain.
Beginning its rebound at the solid $38.00 support threshold, the AVAX price trajectory has been one of unwavering upward momentum when evaluated against the US dollar. Trading activity has consistently maintained levels above $42.00, further bolstered by a strong position over the key benchmark of the 100 simple moving average across a four-hour span.
Marking its presence in the technical charts is a significant rising channel characterized by a support vicinity of around $40.80, defining the AVAX/USD pairing’s landscape. This structure gives credence to the possibility of continued appreciation, provided support levels at $40 and $38 remain unbreached.
After navigating through a brief phase of correction, Avalanche’s AVAX found its footing near the $38.00 zone, etching a low at $36.48 before embarking on its current ascendant path. The rally was not timid, conquering thresholds close to $40 and showcasing strength relative to leading counterparts such as Bitcoin and Ethereum. The surge witnessed a substantial climb beyond the 76.4% Fib retracement mark of the previous descent from a high of $45.33 down to the $36.48 nadir.
Currently, AVAX trades determinedly above the $42 mark, sailing over the 100 simple moving average with the noted rising channel in the backdrop of its 4-hourly chart.
On the horizon, AVAX faces resistances imminently at $45.40, with a consequential barrier looming at $46.80. Breaking past these levels could catapult the token’s value by over 10%. Such a breakout could pave the path towards $50, with optimistic trajectories eyeing $52.
Conversely, should AVAX stumble in its climb beyond the resistances of $45.40 or $46.80, a corrective trend might ensue. The support line of the rising channel at approximately $40.80 offers a cushion. However, the principal support lies with the $38.00 base. A dip beneath this foundation has the potential to trigger a substantial retreat, potentially targeting $34.20—aligning with the 100 simple moving average over a four-hour period—and further down, major support at $27.50 beckons.
Technical indicators enhance the narrative, with the 4-hour MACD accentuating a bullish momentum and the RSI (Relative Strength Index) cruising above the 50 mark. These indicators collectively suggest that AVAX is on secure footing for potential extended rallies.
Primary Support Levels: $40.80, $38.00.
Primary Resistance Levels: $45.40, $46.80, $50.00.
Investing in cryptocurrencies carries inherent risks, and the insights provided serve merely for educational purposes. Each investment decision should be underpinned by meticulous research and grounded in the reader’s sole discretion.