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Avalanche [AVAX] consolidates near key support; is an upswing likely? 

2min Read

Avalanche’s [AVAX] performance was dismal in the past few days. But there’s a recovery chance if BTC doesn’t drop significantly in the coming days.

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

  • AVAX structure was bearish on the daily chart
  • Sentiment in the futures market was bearish, too, at press time 

Avalanche’s [AVAX] weekly and daily performance was unsatisfactory at the time of writing. The asset only increased marginally by 0.3% in the past week but declined by 2.1% in the past 24 hours, according to CoinMarketCap. 

At press time, AVAX’s value was $17.05, flashed red but had lower candlestick wicks in the support zone (cyan) – highlighting bulls were keen on defending the support. 

Is your portfolio green? Check AVAX Profit Calculator 

However, the upcoming FOMC meeting on 2-3 May could expose Bitcoin [BTC] to fluctuations before steadying afterward. Similarly, AVAX will follow suit, and macro traders can track these key levels.

Will the bulls inflict a rebound?

Source: AVAX/USDT on TradingView

The bullish order block (cyan) of $16.44 has been a key support in April and late March. At press time, price action was below the short (50-EMA) and long (200-EMA) trends, reiterating sellers’ leverage.

However, AVAX’s pullback retested the support level alongside lower wicks which could suggest a potential uptrend. A confirmed uptrend continuation above $18.0 could set the AVAX/USDT pair to rally to the supply zone of $21- $22. 

If that’s the case, an entry at $18 for a long position targeting $21 can offer a good risk ratio. However, obstacles lay at the dynamic 200-EMA ($18.87) and Fair Value Gap (FVG) zone of $19.5 – $20.2 (white). These obstacles could offer resistance to the likely upswing. 

On the contrary, AVAX’s structure will weaken further if the $16.4 support cracks. A close below it could tip sellers to sink AVAX to $15.4 or March swing low of $14. 

Meanwhile, the Relative Strength Index (RSI) has been fluctuating in the low range – highlighting buying and selling pressure was equal in the past few days, but sellers had a slight advantage. Similarly, the On-Balance Volume (OBV) was flat, showing demand stagnated in the same period. 

More liquidations of long positions

Source: Coinglass

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

According to Coinglass, over $172k worth of long positions were liquidated in a span of 12 hours. In the same period, only $25k worth of short positions were wrecked – showing bearish sentiment still looms large at press time. 

The bearish sentiment was confirmed by the exchange long/short ratio. This showed that sellers dominated at 51.76%. Hence, AVAX’s structure will remain bearish unless the price exceeds $18. Investors should track BTC’s price action before making moves. 

Source: Coinglass


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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