AVAX likely to hit $40 next – But watch out for these hurdles!

by
  • Avalanche prices are likely to climb higher in the coming weeks.
  • The higher timeframe price chart and the liquidity pockets underlined the potential areas for a trend reversal.

As a seasoned researcher with extensive experience in the crypto markets, I have witnessed the volatility and unpredictability of prices, especially in the case of Avalanche (AVAX). Based on my analysis of the charts, I believe that AVAX is poised for further price gains in the coming weeks.

Avalanche’s [AVAX] price had started to regain ground after suffering setbacks in May and June. Its recent surge above the $30 mark suggested a strong buying interest, implying further upward momentum could be on the horizon.

Despite the current alignment of higher timeframe trends, long-term investors may face unfavorable conditions at present. Insights from Fibonacci levels offer potential indications regarding possible price movements ahead, as well as potential subsequent developments.

AVAX bulls need to be ready to take profits

AVAX likely to hit $40 next – But watch out for these hurdles!

Read more$70 million in 24 hours: Can Ethereum crack $4,000 thanks to whales?

As of the current report, the daily market trend was positive and bullish, indicating a potential increase in price up to $40. However, the weekly chart showed a bearish pattern, signaling an impending downturn after this rise.

With the decline in price during May and June, a series of Fibonacci retracement levels were generated. The 50% mark, located at $32.66, has previously acted as a resistance point.

In simpler terms, the Daily RSI stood at 51, indicating only slight gains following last week’s market downturn. Additionally, the On-Balance Volume (OBV) remained mostly stable in June, implying that the Avalanche bulls may lack the power to launch a significant rally at this time.

The magnetic zones and hints of the reversal’s location

AVAX likely to hit $40 next – But watch out for these hurdles!

Based on my extensive experience in cryptocurrency analysis, I believe that earlier this month, the attractive liquidity pool at $30.8 exerted a significant pull on the price of AVAX, drawing it toward that level. The token surged to reach a high of $33 before subsequently experiencing a decline. Looking ahead, my forecast indicates that the targets for AVAX lie further up the price ladder, specifically at $34.3, $37.5, and $39.5.

Read moreBitcoin halving could be a ‘sell-the-news’ event, at least for a few months

Is your portfolio green? Check the Avalanche Profit Calculator

The prices in these areas might hover above the $30 mark but could also be at risk of dropping further, thereby increasing the availability of assets for purchasing.

The alignment of the price movement with the previously mentioned Fibonacci retracement levels is quite noticeable. Consequently, as long as the $38 threshold remains intact, swing traders should consider the established structure of the weekly chart to remain valid.

Read More

2024-07-29 20:08