At the time of writing, the Avalanche price action was still bearish. AVAX prices have remained above the $22 support line. The coin surged to $24 and then retraced on its chart.
It is price correction, as Avalanche prices have appreciated in the last 2 weeks. Avalanche has been experiencing a profit booking, which is causing buying power to diminish over the past few days.
If Avalanche’s price rises above $25, then the bullish trend might strengthen. If AVAX drops on the chart, buyers can find their way back into the market which could lead to another rally.
A wider crypto market strength is also low, as BTC continues to crawl below $23,000. Ethereum also suffered losses in the past 24 hours. The same price path was followed by most altcoins.
Strength from buyers is essential for Avalanche to overcome its $24.8 resistance. With a current market capitalization of $1.1 Trillion, cryptocurrency is the largest global marketplace. 2.5% fall In the past 24 hours.
Avalanche Price Analysis: Four Hour Chart
AVAX trades at $23.12 as of press time. The coin showed some corrections after a recent rally of over 20%. It was trading at $22 immediately and could see continued selling pressure pushing the Avalanche’s price to $21.
Avalanche’s overhead resistance was $24.8. A break above this level would propel Avalanche to $26. Multiple weeks have passed since the coin failed to move past that level.
Sellers are flooding the market to make profit, as the Avalanche prices have seen an increase in the past two weeks. This session saw a decrease in Avalanche trade volume than the one before. This might indicate that buyers are losing strength.
Technical Analysis
The altcoin’s buying strength was low on its chart. Sellers outnumbered buyers due to recent profit booking. The same result was indicated by technical indicators. Relative Strength Index was slightly below half-line, which indicated that buying pressure was greater than selling pressure.
This could signal a mixed signal. The price of Avalanche climbed slightly above the 20 SMA. If the reading is above the 20 SMA, it means that the market was bullish. A reading below the 20-SMA indicates sellers.
Other technical indicators showed mixed signals. Chaikin Money Flow, which measures capital outflows and inflows, was found to be positive. CMF’s reading above the zero-line indicated that capital inflows exceeded outflows at the time of writing.
A Moving Average Convergence divergence shows price momentum and changes in direction. MACD underwent a bullish crossover, forming green histograms. The green histograms indicated a buying signal. AVAX could also gain if it was acted upon by buyers.