After witnessing a serious contraction for a few days, Avax initiated a surge yesterday and resumed buying. The pressure is currently low but we can expect a big price movement when volume increases.
The past week’s trading was uninteresting for many traders as Avax entered a serious but brief consolidation mode due to volatility shrink.
But things have turned out a bit positive amid rising volume in the past 48 hours, and as we can see on the daily chart, the crypto is slowly climbing back with a surge to the $40 level – which is currently rejected.
This surge came after mounting support above the $33 level during last month’s correction. Looking at the market from a technical standpoint, the correction appears to have ended on the daily chart. A full recovery to the top should bring the bulls back in control. But for now, the demand level appears low.
If the asset loses grip again, Avax may resume correction until it finds a solid ground. Currently, it shows no signs of weakness on a daily scale as the bulls commit strongly to the price.
While volume is slowly flowing back in the market, a break above the previous high could feature a bigger upward rally in the coming days.
Avax’s Key Level To Watch
Source: Tradingview
The $42 level is an immediate resistance to watch in the latest surge. An increase above this level could bring more recovery to the $48.1 and $55.5 levels with a potential break out.
Aside from the $33.6 level that acted as support during last month’s drops, Avax currently trades above $39. If the mentioned support level fails to hold, lower levels to consider for drops would be $29.9 and $23.9.
Key Resistance Levels: $42, $48.1, $55.5
Key Support Levels: $33.6, $29.9, $23.9
- Spot Price: $39.2
- Trend: Bullish
- 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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