Avax has been gaining traction since it established support in September. This action triggered a pause in its long-term selling as it bounced to test a vital resistance line today. A drop can be expected if a breakout fails.
The past weeks saw Avalanche’s price through an impressive gain as it bounced off temporal support of $8.6 during late last month’s recovery in the overall crypto space.
This recovery action brought roughly a 25% price increase as it tested a high of $10.78 earlier today – marking its highest price level since August 30. Aside from that, it is pushing a vital resistance line in an attempt to break even.
Looking at the market structure from a broader perspective, Avax is still trading tightly in a descending wedge, which has been forming since mid-2022.
A successful break above the resistance line could propel buying to the wedge’s upper boundary. Failure to break even could result in another leg down to the wedge’s lower boundary.
Should the price surge above the long-term wedge pattern, July’s high remains a crucial breakout resistance to keep in mind for a strong bullish rally.
Nevertheless, it is essential to note that the asset remained in a downtrend from a long-term perspective as there are no signs of reversal at the moment. The price looks strong today as it currently leads the top-gainer chart with a 5% surge in the last 24 hours.
Avax’s Key Level To Watch
The closest resistance levels right now are $11.2 and $12.1, which is marked as August’s breakdown level. Higher resistance levels to keep in mind are $13, $14 and $15.
Currently, the price is sitting well above the $10 level. If this level fails to hold as support, a drop below it could slip the price to $9 and potentially $8.6 before dipping lower.
Key Resistance Levels: $11.2, $12.1, $13
Key Support Levels: $10, $9, $8.6
- Spot Price: $10.6
- Trend: Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.