The Avax price has been consolidating in a wide range since the start of 2023 ranging between $14 and $21.30. Avalanche price in the month of March received a strong rejection from the $14 level and started to rise toward the annual high of $22.79.
However, the move was halted at the $21.30 level as the price reached near the supply zone. The cryptocurrency price then dropped $14 support by performing zone-to-zone breakout on several levels.
AVAX’s price was bullish in the past week but the previous candle closed as a strong bearish candle. Avax price prediction suggests that the price might further drop to the $14 support level again.
If bulls can push the price above $15.60, there is a possibility that the price might head toward $16.5. While on the other hand, if the price wrecks the support and closes below $14, there is a probability that the price might melt to the $11.60 level.
EUROC’s Launch On Avalanche
Recently, Avalanche revealed that it would support the Euro coin (EUROC), a stablecoin pegged to the Euro currency. Euroc is now live on Avalanche which marks it as an important milestone.
Avalanche expects to benefit in terms of network utility as one of the layers 1 networks supporting the stablecoin. The launch represents a dynamic shift following the anti-crypto sentiment in the United States. The crypto company is now seeing Europe as a favorable market for crypto.
Will AVAX Price Shift Trend From Bearish to Bullish?
Avax price is trading below 20,50,100 and 200-day EMAs indicating bearish momentum in the price. The 20-day EMA has been acting as a resistance to the price. The Chaikin money flow score is still above the 0 mark indicating strength in the market. RSI trades at 40.92 after avoiding a fall into the oversold zone and the Bulls managed to regain control in the last few days.
The bands of Bollinger have contracted indicating low volatility in the market. Avax price took a downturn after attempting to rise above the 20-day SMA and is now headed toward the lower band which resides near the $14 support. Avalanche price need to rise above the $15 resistance level to reach $15.60.
The long/short ratio is 0.96 with 49.08% longs and 50.92% shorts in the last 24 hours indicating increased sellers’ participation in the market.
Conclusion
The market structure and price action for Avalanche have turned bearish after showing signs of bullishness. The technical indicators are indecisive as the price is still stuck in the consolidation zone. The region has become quite messy for the price and would require high bullish momentum to cross the immediate resistance level of $15.60. Despite the uncertainty, Avalanche demand is increasing in the derivatives market.
Technical levels
Major support: $14 and $11.60
Major resistance: $15.6 and $16.5
Disclaimer
The views and opinions stated by the author, or any people named in this article about Avalanche Price, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/30/avalanche-price-prediction-avax-price-gains-bullish-momentum/