Avalanche (AVAX) has initiated a positive trend after experiencing extended corrections. Currently trading at $25.78, AVAX has confirmed a structural shift by surpassing the critical resistance of $22.80. Both investors and analysts predict a potential bullish run for AVAX in the upcoming months.
Signs of Recovery for Avalanche
Following significant declines in the cryptocurrency market, Avalanche (AVAX) is showing signs of a comeback. Having lost over 70% of its peak value since March, AVAX has at last broken free from its downtrend channel. The structural change has provided AVAX with strong daily chart momentum, which many analysts believe could indicate the beginning of a new upward trend. Access NEWSLINKER to get the latest technology news.
Crypto analyst Dom has been closely monitoring AVAX’s price behavior. Over the past six months, AVAX has been trading within a classic downtrend channel. Recent developments suggest that this channel has been broken. According to Dom, the $25 mark was a crucial psychological resistance level. Continued movement above this threshold may spark a new bullish phase for AVAX.
Possible Scenarios for AVAX
AVAX is currently consolidating above the 200 exponential moving average (EMA) level of $23 on the 4-hour chart, a dynamic resistance point in the market. If AVAX can maintain its position above this level, the next target could be $28. Conversely, if the price dips below this EMA level, a retest of the previous resistance level at $22.80 might be in order.
Key Takeaways for Investors
– AVAX’s ability to sustain above $25 could indicate a potential long-term uptrend.
– A dip below the 200 EMA level may trigger a retest of the $22.80 support level.
– Adequate market liquidity is crucial for maintaining any upward momentum.
In the upcoming days, AVAX’s price movements will be crucial. The cryptocurrency market is keenly observing to determine if AVAX can initiate a new rally. Capturing the right momentum may result in significant gains for AVAX. However, sustaining the uptrend will require ample liquidity within the market.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/avax-surpasses-key-resistance-level