avalanche avax

Avalanche builds up for a fresh explosion as it continues to gather volatility over the past few days. While facing a crucial resistance, the bullish rally remains intact as the rally pauses.

So far, Avalanche has increased by over 60% since the beginning of the year, and it is likely to start a fresh increase above the current trading level of $18.

The past few weeks have been quite interesting following the notable surge in the price of Avalanche. However, the wave was slowed down a bit as volatility shrunk with choppy price actions.

Such a price squeeze is mostly followed by a massive explosion, which could propel the price more in an upward direction. A look at the 4-hour chart suggests that buyers are reinforcing a strong momentum, which is likely to occur any time from now.

This build-up may cause the price to shoot straight at $20 before tapping more high levels. However, the price needs to break out of the resistance line formed in mid-2022. There is a need for strong buying pressure to bring the actions into play.

And if rejection occurs and the price goes in the opposite direction, we can expect a retracement before rebounding higher. A continuous decrease below the recovery level will cause severe pain.

Avalanche’s Key Level To Watch Out For

Source: Tradingview

If the price drops from the current trading level, the level to consider as support on the daily chart is $16, followed by $14 and $12. The next support level to consider is $10.55. a crash below this level will turn the trend bearish.

As Avax continues to face critical resistance around the current price level, the resistance to watch for a breakout is $20 and $20.6. Above it lies $21.8 and $23.7.

Key Resistance Levels: $20, $21.8, $23.7

Key Support Levels: $16, $14, $12

  • Spot Price: $18
  • Trend: Bullish
  • Volatility: High

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Image Source: alidrian/123RF // Image Effects by Colorcinch

Michael is a professional trader and cryptocurrency technical analyst with many years of trading experience. He became passionate about cryptocurrencies and blockchain technology through his sister and has since been following the industry


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