AVAX holds on to $14 – Rally next?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Avalanche [AVAX] retraced by 31.9% between 18 April and 28 May after the price was rejected close to the $21.92 resistance level. However, over the past five days, AVAX found support at the $14 level. This provided the base for its bullish rally in early March.
A continuation of this rebound for AVAX could be dependent on Bitcoin [BTC] sustaining its current rally toward $30k.
Bulls look to push on after defending the $14 support level
On the 12-hour chart, the Relative Strength Index (RSI) climbed strongly out of the oversold zone and stood at the neutral 50 mark, as of press time. This signaled the selling pressure on AVAX could be waning.
Similarly, the Moving Average Convergence Divergence (MACD) posted a bullish crossover with the MACD line (blue) moving above the signal line (red). This hinted that bulls were slowly gaining the upper hand in the market.
The signals from on-chart indicators along with the defense of the $14 support level could spur bulls to reach the $16.36 resistance level. This rally could be accelerated with Bitcoin advancing toward $30k.
On the contrary, bears could maintain the overall bearish trend with a retest of the $14 support level. A breach below the support could lead the price toward $13.04 or $12.19.
Read Avalanche [AVAX] Price Prediction 2023-24
Open Interest recorded a moderate uptick
According to data from Coinalyze, the Open Interest (OI) for AVAX rose mildly since 25 May, capturing the recent price rally. A sustained rise of the OI along with the bullish rally could deliver significant price gains.
Furthermore, the Funding Rate remained very positive to boost AVAX’s recovery and capacity to push past the next resistance level.