Since Avalanche (AVAX) moved from little-to-no volatility last month, the price remained in a consolidation phase with choppy price action. It attempted a breakout but failed due to rejections.
The mid-March bounce saw AVAX through a decent recovery but failed to extend positive actions beyond the critical $18.3 resistance level as a result of a shrink in volatility. The price fell and held firmly above $17.
While in the middle of the consolidation, AVAX increased by 4% in the last three days to trade back above the $18 psychological level. This mild recovery gave the buyers a little dominance. But the critical resistance level is still posing threat to buying actions.
A notable surge above this resistance level could signal a big price movement toward the August 2022 peak in the near term. Otherwise, the price will remain trapped in the middle of consolidation.
Taking a critical look at the setups, AVAX appeared to be gathering volatility and, at the same time, building up a bullish momentum from a technical standpoint.
We can expect a massive rally as soon as the price breakout of the structure from a short-term perspective. As of now, the buying volume looks insignificant on a daily scale. A perfect double-bottom pattern is in play.
AVAX’s Key Level To Watch
Acting upon the latest gains in the market, the breakup level to keep an eye on lies on the critical resistance level mentioned earlier. The next resistance level to watch is $19.47 and $21.8 – which serves as the short-term breakup level. The closest resistance level above it lies at $23.7 and $25.
Considering AVAX for a bearish action, the price will have to slip below a weekly support level of $16.9 and potentially $15.56. The March rebound level of $14 remains a key breakdown level for more drawdowns.
Key Resistance Levels: $18.3, $19.47, $21.8
Key Support Levels: $16.9, $15.56, $14
- Spot Price: $18
- Trend: Neutral
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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