Bitcoin smashes a new ATH after consolidating for a while, but the altcoins maintain a slow yet steady trend. This could be because of the growing BTC dominance, but some of them continue to fight the bearish interference. Similarly, the Avalanche price displays a huge backing from the bulls as the levels are constantly hitting the upper resistance of the pattern. Regardless of the growing market sentiments, here are the crucial levels that need to be sustained for the AVAX price rally that may revive the hopes of a 3-digit figure soon.
Although the short-term trade included multiple price variations, the weekly trade suggests the token has maintained a strong ascending trend. The price is testing the upper resistance of the rising parallel channel that it maintained after rebounding from the November lows. Although the bulls have constantly failed to climb above the resistance, the bears appear to have silently increased their presence, and a move below these levels may validate a pullback.
The AVAX price appears bullish in the wider perspective as the levels have risen significantly and are trying to breach the resistance. However, there are multiple reasons to be bearish on the AVAX price rally regardless of the probable ‘Golden Cross’ that is expected to occur a short while from now.
- The price is constantly failing to break the resistance of the rising parallel channel, and a 5% pullback from the current levels could validate a double-top pattern.
- Secondly, the volume dropped heavily after the price achieved the yearly highs at around $37.50, suggesting the traders may have squeezed out the profits and are probably waiting for a lower entry level.
- Lastly, the MACD indicates a massive drop in the buying pressure, which may further pave the way for the sellers to intensify their action. Moreover, with the bearish crossover, the price is expected to trigger a fresh bearish trend.
- On the other hand, the OBV has also displayed a bearish divergence, suggesting the bears are slowly conquering the rally.
Above all, the major bearish signal is the possibility of a ‘Death Cross’ in the weekly timeframe. The rally underwent a golden cross a few weeks before, and without undergoing a bullish breakout, the 50/200-day weekly MA are about to undergo a bearish crossover. This suggests the AVAX price is about to face a small pullback of close to $30. However, after a brief consolidation, the price is believed to trigger a fresh upswing as the crypto markets are in between a massive bull run.
Source: https://coinpedia.org/price-analysis/bears-hold-a-tight-grip-over-the-avalanche-price-rally-while-sentiments-are-bullish-heres-whats-next/