Connect with us

Altcoins

AVAX [Avalanche] enters into narrow price range as it prepares to exit…

Published

on

Source: Pixabay


AVAX was among the cryptocurrencies that registered a significant upside after its recent bottom. A healthy sign that it experienced some accumulation after its price cascaded to recent lows. However, zooming out reveals that it has been trading in a falling wedge pattern and is due for a breakout.

AVAX is currently within a narrow price range restricted by descending resistance and support lines for the last few years. The downside from mid-last week resulted in a retest of the support line on 13 and 14 June. It then registered a slight upside that pushed it towards the resistance line, as the two lines converge. This means that the price is due for a breakout either to the top or bottom.

No avalanche of buying pressure?

AVAX only managed to rally slightly after the support retest. A sign that any accumulation that took place at recent lows was not enough to trigger a major uptick.

AVAX traded at $16.31 at press time which is a modest gain from its recent low of $14.58. It was, however, a rally by more than 10%, making it one of the top gainers in the last 24 hours.

Source: TradingView

AVAX indicators reveal a significant probability of a bullish breakout from the wedge pattern. Its RSI recently dropped into the oversold zone and the MFI indicator, at press time highlighted significant accumulation at its recent low. The -DI also experienced some downside in the last two days, suggesting that the bears shed some of their momenta. However, the bears did not register a significant momentum uptick, likely due to the prevailing market uncertainty.

On the on-chain side of things, Avalanche’s Binance funding rate metric improved slightly since 13 June. This is a sign that AVAX demand improved slightly after the recent crash and it is consistent with the slight price uptick. Its market cap also registered a significant improvement from its recent low of $4.3 billion on 13 June to $4.8 billion by 15 June.

Source: Santiment

NFT trades on avalanche also improved in the last few days. The total NFT trades volumes peaked at $2.27 million on 14 June. This was the highest NFT trade volume in the last four weeks.

AVAX metrics indicate that it is on a recovery path and this reflects the price chart observations. However, there is still a risk of more downside if the market fails to secure enough buying volume for a significant rally.

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.


Please select your Email Preferences.

Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.