AVAX rallies past $20 – Is another 50% gain around the corner?

Journalist

Posted: November 22, 2023

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• AVAX showed a strong bullish intent with its recent move above $23.
• A retest of a liquidity pool could present a good risk-to-reward buying opportunity.

Avalanche [AVAX] was selected as the platform upon which the investment firm Republic would launch its digital asset. AMBCrypto’s analysis showed that despite the news, the price had taken a bearish bias on the lower timeframes.

However, the past three days of price action showed that the $20 zone was flipped to support. This was an interesting development, as it meant AVAX was primed for further gains.

The previous 2023 highs were finally broken

Source: AVAX/USDT on TradingView

In February earlier this year, AVAX reached the $21.66 mark. In late January, it had climbed even higher, albeit momentarily, to $22.79. Therefore, these are the two levels that were considered resistances to be flipped to support.

On 17th November, AVAX reached $24.69, although it hasn’t flipped either the $21.66 or $22.79 to support. The market structure remained bullish on the one-day chart, and the RSI floated above 70. Together they signaled firm bullish momentum.

Additionally, the move past the 2023 high was another sign of bullish intent.

The On-Balance Volume (OBV) shot higher over the past six weeks to reflect intense buying pressure in the market. To the north, the next major resistance level was at $30. Hence a retest of the $19-$20 region could present a good buying opportunity.

There was additional evidence that a sweep of the $20 was a likelihood

Source: Hyblock

AMBCrypto’s analysis of Hyblock liquidation data showed that there were two regions of interest for AVAX to watch out for. The first and less important one was the $23.6 zone which had close to $600 million in liquidation, based on the past 30 days’ data.

Read Avalanche’s [AVAX] Price Prediction 2023-24

The other was the $19.4-$19.7 region which has a huge number of liquidations built up. It also lined up with the liquidity pool from the price action at $19-$20.

Therefore, an AVAX revisit of the $19 area would present a good buying opportunity. While it appeared ambitious, a move to the $30 weekly resistance remained a likelihood.