Avalanche (AVAX) The overall trend of the price is still bullish at a level where the last correction phase in the price found good support at $78. Also, this impressive price recovery over the past few days could be triggered by a slew of positive news such as Circle launching its stablecoin USD Coin (USDC) on Avalanche. In addition, a report by Nasdaq stated that Bank of America analysts characterized Avalanche as a viable alternative to the leading smart contract platform Ethereum.
Important Technical Points:
- AVAX price retraces the 50-day EMA.
- Intraday trading volume on AVAX stands at $2.4 billion, a 21.2% increase.
AVAX/USD recently dropped towards the 0.5 Fibonacci retracement level, causing its price to move down as much as 30%. AVAX hovered above this level for almost two weeks before giving a suitable signal for an upside reversal.
On December 15, AVAX price tried to break the nearest resistance near $100-$97.8 and after a short retest. altcoincontinued its rally, targeting an all-time high of $146.
The key EMAs (20, 50, 100 and 200) are showing a strong uptrend, regaining their bullish level on the daily chart. The Relative Strength Index (60) line has risen above the neutral zone, creating a bullish sentiment in the price.
AVAX/USD 4-Hour Timeframe Chart
So far, AVAX price is up 48% from the lower $78 support. Now it is rising steadily towards the next resistance at $127. If the price manages to regain this overhead resistance, the coin will soon challenge the $145 ATH resistance for a bullish breakout.
Conversely, even if the price rejects the above resistance, crypto traders can maintain the bullish sentiment until the price stays above $100.
The traditional pivot is showing a remarkable confluence with the chart level of AVAX/USD. Based on these pivot levels, traders can expect the nearest resistance at $117 followed by $127. Coming to the opposite end, the support levels are at $97.7 and $87.3.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.