Avalanche (AVAX)is trying to stabilize its price with a correction phase from the extraordinary rally it started in August. Currently, the price has dropped to the critical support of the 0.5 Fibonacci retracement level with the potential to continue the bullish rally.
Important Technical Points
- Dynamic support 20-day EMA turned into possible resistance level.
- AVAX’s intraday trading volume stands at $1.37 billion, marking 14.15%.
AVAX/USD It recently hit an all-time high of $146. Following the strong rejection of this new resistance, the token price had retraced 25% within two weeks. The token is currently down to the 0.5 Fibonacci retracement level, indicating a high demand pressure through multiple low-priced candles.
The key EMA levels (20, 50, 100 and 200) remain bullish for this token as its price is trading above the trend defining the 100 AND 200 EMA. However, the dynamic support of the November rally 20 EMA turned into resistance.
The Relative Strength Index (44) is showing a steady bearish divergence approaching the oversold zone on the chart.
AVAX/USD 4-Hour Time Chart
AVAX The price showed an impressive “V-shaped recovery” after bouncing off the $80 support. However, crypto traders should wait for the price to break out of this $100 nearest resistance to get better confirmation for the price to continue this rally.
According to the Fibonacci pivot levels, crypto traders can expect the nearest resistance at $97 followed by $116. On the other hand, support levels are at $77 and $65.
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.