Avalanche has seen a recovery in its charts. Altcoin gained 4.8% in 24 hours. AVAX trades below its old price floor, even though there was a substantial daily gain.
For investors, it is hard to see the daily gain alone as sufficient reason to purchase the coin. Technical for the coin hasn’t suggested strong bullishness which might suggest that AVAX could be a good buy at the time of writing.
Avalanche’s (AVAX), market value has dropped 8% in the past week. Investors were forced to dispose of the assets and flee. This could be a red flag to investors as AVAX fell below its long-term support zone.
AVAX’s next strong area of support was located at $20. The current coin price was the same as it was in August last year.
Avalanche Price Analysis: One Day Chart
At the time this article was written, Avalanche (AVAXX) was trading at $31 For nearly one week the altcoin was trading lateally at this mark. The coin traded at that price last year but it was in an uptrend.
As previously established, the immediate resistance of the coin was at $40. A drop below the current price could see AVAX close to the $20 support level. AVAX could fall to the $10 or $9 support levels if it fails to settle below the $20 mark.
Technical Analysis
Altcoin’s chart continues to show weakness. Because there are no buyers in the market, it seems that technical outlook is bearish. As the coin revisited the August, last year’s price level, AVAX remained under the grasps of the sellers in the market.
Relative Strength Index showed that the indicator was just above the oversold threshold. Unless RSI crosses the half-line above, it will be too early to consider this price action a reversal.
According to the Directional Movement Index which shows the price direction, the bears control the market. The +DI marker was below the -DI, which indicates bearishness. This reading indicated that there were less signs of price action reversal than the Average Directional Index (red).
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On the one day chart, AVAX’s technical pointed towards a possible change in price direction at the time of writing. MACD (moving average convergence diverge), displayed a signal bar that was green above the half-line.
If a green signal bar is visible above the halfway line, it could be a buy signal. However, continued buy signals may indicate a shift in momentum.
The Parabolic SAR showed a dot under the price candles. It indicates that there has been a price change. AVAX could stage a chart recovery if there are more dots beneath the candlesticks during the next trading session.
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