Avalanche (AVAX), is struggling to keep above the key support that will help set the stage for the rally to the $40 region, as many anticipate.
Bitcoin’s (BTC), which was unable to break the important support at 50 percent exponential moving average (EMA) daily, saw a retracement. BTC’s unable to hold that region has led to AVAX struggles to form good support.
Avax Weekly Chart Analysis
Avax’s weekly chart shows that the downtrend has reversed to $16.3. This was where buyers are more open to entering the market.
This chart illustrates that Avax must close at $23.7 to resume bullish movements to reach the anticipated $40 mark.
Avax’s $16.3 support has been strong, and there are more buyers looking to make bids. The region is a potential demand hub if Avax’s current price drops.
Major resistance on the weekly chart – $23.7
Major support on the weekly chart – $15
Avax Daily Chart Analysis
Avax is showing a daily price chart that shows that it has not reclaimed the 50-exponential moving average (EMA); this indicates that Avax may be facing a significant resistance, which will prevent the stock from climbing higher.
Avax is a daily chart that has support around $16.3 and a triple bottom formation.
Triple bottoms are a formation that reverses bullish trends and allows crypto investors to acquire more assets.
Avax is trading above the 50 EMA, and bulls would like to see this price move higher. Avax prices are trading below the 200 EMA. If Avax breaks through the 50 EMA, this could serve as an Idea resistance.
Bitcoin prices are trying to rebound from the $24,000 level, which is difficult. A close above resistance and good volume could allow Avax’s price to rise with strong buy volumes.
The daily chart’s volume and relative strength Index (RSI) looks good, with the RSI above the 50 mark area.
Daily resistance – $24.7.
Daily support – $20.5.
Avax price analysis on the 4H chart
The price of Avax on the 4H chart shows the price has reclaimed both the 50 & 200 EMA, indicating an upward trend if all market conditions remain favorable.
Avax is trying to break out from a bullishsymmetric triangle on its 4H chart. Resistance lies at $25.43. Avax could rally if the triangle is broken and closed above it.
Avax volume indicates that buyers are entering the market after panic sales in response to market fall.
Avax’s relative strength index is above 50, which indicates that there are buy orders on the market.
If Avax fails to rise above $25.43 in price, a pullback to support corresponds to 50 EMA is possible.
Resistance on the 4H chart – $25.42.
Support on the 4H chart – $23.4.
Featured Image from Finbold. Charts From TradingView.com