Key Insights:
- AVAX tests descending wedge resistance near $9.30 on the 4-hour timeframe.
- Funding rate remains near neutral with no extreme leverage imbalance.
- Daily resistance stands at $10, while $8.80 remains immediate support.
Avalanche (AVAX) traded at $9.24 on Friday. The token gained 4.3% in 24 hours and 4.5% over seven days. Trading volume reached $259.5 million. Price now tests a key level on the 4-hour chart.
Clifton Fx stated,
“$AVAX is trying to break the descending broadening wedge in 4h timeframe.”
He added that
“if breaks with momentum candle we can see a massive bullish Rally.”
The pattern has capped price for several weeks.
4H Chart Tests Upper Trendline
On the 4-hour AVAX/USDT chart, price moves near $9.20–$9.30, which marks the upper boundary of the wedge. The formation shows lower highs and lower lows within widening trendlines.
AVAX formed higher lows between $8.40 and $8.60 before pushing toward resistance. A strong candle close above the upper trendline would break the structure on this timeframe. The measured projection from the pattern points toward the $14–$15 area, based on prior price zones.
If price fails to clear resistance, the wedge remains active. In that case, AVAX may return to $8.50 support or test lower levels inside the formation.
Funding Rate Remains Near Neutral
Coinglass data shows the OI-weighted funding rate stays close to zero with a slight negative tilt. Over recent months, funding shifted between positive and negative but did not show extreme readings.
During the drop from the $40–$50 range, funding turned negative at times, reflecting short positions. The readings stayed limited, which shows no heavy crowding on one side.
A sharp negative funding spike appeared during the October decline. After that move, funding stabilized near neutral while price continued lower.
Daily Chart Shows Range Near Lows
On the daily chart, AVAX trades near $9.25 after bouncing from the $8.00–$8.30 zone. Price now moves in a narrow band between $8.80 and $9.50.
Resistance stands at $9.80–$10.00, followed by $10.80–$11.00. A daily close above $10 would mark a higher high on this timeframe. If $8.80 fails, the $8.00 level becomes the next support.
RSI reads near 41, rising from below 35 earlier this month but still under 50. MACD shows a slight positive histogram while remaining below zero. Traders watch whether AVAX can break resistance or return to support.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Source: https://coincu.com/analysis/avax-trades-near-9-24-as-wedge-break/