Avalanche crypto stalls below $30 resistance: Should bulls be cautious?

Avalanche has been unable to break the $30 resistance zone for a month.
The price action and the indicators showed that a short-term range formation is likely.

As a seasoned analyst with over a decade of experience under my belt, I’ve seen my fair share of market fluctuations and trends. The current state of Avalanche [AVAX] is a classic case of a coin that’s struggling to break through a significant resistance level – in this case, the $30 mark.

Starting from early August, the price of Avalanche (AVAX) has been gradually climbing upward. It’s currently approximately 78% higher than its lowest point on the 5th of August, which was around three months back.

During this time, Bitcoin [BTC] and Ethereum [ETH] are up by 36.5% and 23.8% respectively.

It’s shown that Avalanche cryptocurrency has performed exceptionally well compared to major, widely recognized assets, with a notable advantage. However, the token isn’t currently positioned for a sustained upward trend in the long term.

Avalanche is not in a strong trend

As the Awesome Oscillator histogram approached zero, it suggested a weakening bullish trend, as evidenced by the appearance of red bars. Although the overall market structure remained bullish, the momentum had noticeably decelerated over the past three weeks.

The DMI, as indicated by the ADX (in yellow), being less than 20, signified that a robust trend wasn’t underway at that time. Moreover, the A/D indicator remained unchanged in October, hinting at a scarcity of consistent buying or selling activity.

The data supported the market movements suggesting no clear trend was present. Although there were positive signals, the $30 significant level remained undefeated.

Unless the volume picks up, traders can expect a small range formation between $27.2 and $29.8.

Magnetic zone at $30 is of interest

As a researcher, I discovered that there was a notable concentration of liquidity around the $30 mark in my recent analysis with AMBCrypto. Furthermore, I observed a significant accumulation of potential liquidation points at the $27 level as well.

This finding supports the idea of a range formation in the coming days for Avalanche crypto.

There’s some ambiguity about which of the two magnetic zones will be examined initially. While Zone 30 exhibits a stronger magnetic field, it’s situated at a greater distance.

Thus, traders might consider a revisit to $27 as a potential chance to buy and prepare for action if the market responds positively.

2024-10-23 00:07

Avalanche is not in a strong trend

Magnetic zone at $30 is of interest

Read More