Avalanche Defies Selloff, Soared Over 18% This Week: What’s Next?

• 1 The Avalanche token has regained strength, it has retested the 20-day EMA mark.
• 2 Amidst the range breakdown, the token settled near the $25 mark.

Avalanche (AVAX) regained over 18% and defied the selloff this week. Recently, AVAX breached the range neckline support of $30 and displayed a breakdown.

AVAX traded in a downtrend for the last few weeks and exhibited lower low swings. Recently, it showcased a fake breakdown leaving sellers trapped at the bottom.

A breakdown of the descending triangle pattern was noted, but somehow, buyers managed to revive the gains and hit the 20-day EMA mark in yesterday’s session.

The $32 mark is the primary resistance zone; above it, sellers will cover their positions, a spike would be likely. Furthermore, $35 is a strong hurdle and a make-or-break level to be watched out ahead.

At press time, AVAX was trading at $28.40 with an intraday surge of 6.36%, reflecting neutrality on the chart. It has a monthly return ratio of -23.20% and 130.20% yearly, reflecting a short-term downtrend.

The pair of AVAX/BTC is at 0.000463 BTC, and the market cap is $11.21 Billion. Analysts are neutral and suggest that AVAX may stretch the rebound and retest the range neckline of $30 shortly.

Can Avalanche (AVAX) Give a Convincing Pullback Ahead?

Amidst the pullback of over 18% this week, indecisiveness was visible, and the battle looks interesting now. 

A decisive close above the $35 mark highlighted the bulls’ strength, while a follow-on selloff and a rejection from the 20-day EMA mark might lead to a slide toward the $20 mark ahead.

Source: Santiment

The ongoing price action signifies low-volume buying activity, which signals low confidence in buyers to pull the gains ahead. However, buyers need to cross the 20-day EMA to stretch the rebound.

In his tweet, @Daancrypto mentioned that $25 is a strong support, which must be held to pull off a reversal.

Source: X

Yesterday, Oracle Network ChainLink launched its data stream product on the Avalanche Network, which had a positive sentimental impact and fueled the buying pressure.

Its technical indicators revealed signs of recovery. A hammer candlestick was seen at the bottom, and notable follow-on buying was seen in the last few trading sessions.

Futures Data Reveals Fresh Longs Addition

Source: Coinglass

The Open Interest (OI) data displayed a notable spike of over 8.26% to $216.88 Million, revealing long buildup activity in the last 24 hours.

The RSI curve spotted a positive crossover and reflected a massive spike, retaining the midline region.

Avalanche token was ranked 11 with a total supply value of 443.22 Million. Per the Fib levels, the $35 mark is the bull’s primary resistance level.

The immediate support levels for the Avalanche token are $25 and $23, whereas the key upside hurdle is around $32, followed by $35.

Bulls Aiming to Claim the $30 Mark

AVAX retested the 20-day EMA mark and is trying to sustain above it for a short covering move ahead. The battle is interesting as the bulls are looking to defeat the bears by crossing the $30 mark ahead.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.

Nancy J. Allen

Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.