Market Analysis

AVALANCHE PRICE ANALYSIS & PREDICTION (October 16) – Avax Brews For An Increase, Is Fresh Bullish Pattern In Play?

Many altcoins have been posting gains since last weekend as the crypto market regained recovery. Avalanche is not left behind as it taps 4% gains in the last 24 hours. It found a threshold level and now looking set to resume buying.

Avax’s price dropped to a two-year low of $8.8 in September, consolidated above that low for days and recovered by 30% to the high of $11.88. It rejected that level with a long wick earlier this month and slipped back. 

A few days ago, the crypto found a solid ground level an inch away from the previous low and started to show signs of strength in the past hours. Though the buying pressure looks a bit low at the moment. We can expect a significant price movement as the demand level rises by the day.

From the look of things, Avax may see a short-term bullish reversal following the recent increase in the daily volume indicator. Adding to this bias, it is slowly forming a bullish pattern on the current daily chart.

The rejected $11.9 level – which stands as the monthly high – is a key resistance to watch for a short-term breakup before soaring higher. 

Currently, there are no signs of bears in the market. But if they show up again, last month’s low would be their first target before dipping lower. As it stands now, the buyers are showing a strong commitment to price.

Avax’s Key Level To Watch

Source: TradingView

The first line of resistance to the ongoing increase is located at $10. It may further encounter resistance at $11.2 before flipping from $11.88 to $12.1 and $13.

Avax is currently sitting above the $9 and $8.6 support area. If the price falls and these supports fail to contain selling pressure, the lower level to consider for a dip is $7 and perhaps $6.

Key Resistance Levels: $10, $11.2, $12.1

Key Support Levels: $9, $8.6, $7

  • Spot Price: $9.5
  • 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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Image Source: ivanbabydov/123RF // Image Effects by Colorcinch

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