Avalanche’s native cryptocurrency, AVAX, experienced a significant breakthrough when it successfully surpassed a crucial barrier at $13. This obstacle had proven to be a significant challenge for AVAX bulls in the previous weeks, hindering their upward momentum.
However, drawing inspiration from Bitcoin’s impressive surge past the $30,000 mark, AVAX followed suit and decisively shattered this barrier. This remarkable achievement injected renewed optimism into the AVAX community and set the stage for potential further gains.
As the cryptocurrency world buzzes with anticipation, one cannot help but wonder: Will Avalanche’s AVAX continue its upward trajectory, surpassing even loftier milestones?
Indicators Suggest Potential Resistance For AVAX
AVAX registered a notable 6.3% surge within a 24-hour period, propelling its price to $13.19 according to CoinGecko.
AVAX price all glowing in green today. Source: Coingecko
Additionally, the crypto exhibited an impressive 16% surge over the past seven days, signaling growing momentum. However, despite these positive developments, AVAX still faces potential hurdles in its upward trajectory.
According to the latest AVAX price report, the Relative Strength Index (RSI), a widely used indicator that tracks the balance between buying and selling pressure, has consistently remained below the 50-mark since April.
AVAX market cap currently at $4.5 billion. Chart: TradingView.com
This suggests that selling pressure has dominated the market during this period. While Avalanche managed to overcome the earlier roadblock, the lingering presence of the RSI below 50 may indicate the potential for resistance as bullish trends encounter selling pressure.
On the other hand, the coin’s On Balance Volume (OBV) indicator initially experienced a decline but has since shown signs of recovery. The OBV measures the cumulative volume of AVAX traded over a given period, providing insights into the demand for the cryptocurrency.
AVAX price maintaining an upward trajectory in the last week. Source: CoinMarketCap
The recovery in OBV indicates an improvement in demand for AVAX, which is a positive sign for its future performance.
However, it is important to note that as the RSI approaches the 50-mark, it may act as a crucial resistance level for AVAX bulls.
The RSI’s proximity to this threshold suggests that a significant increase in buying pressure will be necessary to overcome potential selling pressure and sustain AVAX’s upward momentum.
Bitcoin’s Resilience And Its Influence On The Altcoin Market
While Avalanche’s AVAX has been making noteworthy strides, the broader cryptocurrency market has been closely watching Bitcoin’s performance as it defies expectations and regulatory pressures.
Bitcoin has displayed remarkable resilience in the face of ongoing regulatory challenges and has continued to captivate investors with its surprising rally.
Source: Coingecko
Bitcoin’s performance often sets the tone for the overall market sentiment. When Bitcoin experiences significant price movements, it tends to impact the value of altcoins, including AVAX.
Positive movements in Bitcoin often lead to increased investor confidence, which in turn fuels the demand for altcoins. Conversely, negative price movements or regulatory concerns surrounding Bitcoin can have a spillover effect on altcoins, dampening investor sentiment and leading to a broader market correction.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Conserve Energy Future
Source: https://www.newsbtc.com/all/avax-breaches-13-barrier-with-16-rally-whats-the-next-price-level-to-watch/