Avalanche price gained a huge spike of 15% crossing the $14 neckline of $14 with a commensurate spike in volume. Furthermore, the price surpassed the 50-day EMA forming a long bullish marubozu candle.
Moreover, the price action indicates that this ongoing rally trapped sellers who were maintaining a grip at $14 and are now covering their positions. Recently, AVAX retested its demand zone of $10, defended it, and led a bounce. Afterwards, buyers showed their willingness and accumulated it, gradually, which led to a recovery.
The chart shows that AVAX has broken its neckline of the ascending triangle pattern, and overnight buying in most crypto assets also favors the bulls.
The ongoing trend shows that AVAX has ended the correction phase and entered bullish territory, and if follow-on buying arises, it will head toward $20, followed by $23.On the other hand, the 200-day EMA is the prompt hurdle near $16, forcing the price back to retest the support zone.
At the time of writing, AVAX is trading at $15.41 with an intraday gain of 17.76%, showing a massive breakout. Moreover, the trading volume increased by 7.65% to $464.65 Million. The pair of AVAX/BTC is at 0.000492 BTC, and the market cap is $5.39 Billion.
Daily Charts Shows Breakout
On the daily charts, AVAX broke the neckline of the ascending triangle pattern and moved out of the cage. Furthermore, the trendline also broke, and a higher high formed in the previous sessions flipping the trend.
As per the Fib levels, AVAX price is crossing the 38.2% level and is now heading for the 50% level, which is at around $16.60. Buyers are close to escaping the upper bollinger band.
The technicals suggest that buyers are gaining momentum and investors are giving clear signals about the demand, resulting in massive intraday gains.
Short Term Charts Favor Bulls
On the 4 hours chart, AVAX price led a short covering move, and the rally has been extending in the past few hours. Moreover, fresh volume addition was noted on the charts, a sign of new long positions raised by investors.
The RSI curve is headed toward the overbought zone, and a positive crossover was noted, indicating a breakout and suggesting further bullishness.
The MACD indicator also shows a bullish crossover and huge green bars on the histogram suggesting a trend reversal in the form of a breakout in the previous session.
Conclusion:
Avalanche (AVAX) price escaped the major hurdle of $14 and initiated a fresh bullish move. Moreover, the massive rally gaining more than 15% suggests most short sellers were trapped in the previous trading session.
Technical Levels:
Support Levels: $14 and $12
Resistance Levels:$16 and $18
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/07/14/avax-price-analysis-avax-rose-by-15-intraday-sellers-trapped/