Connect with us
Active Currencies 17799
Market Cap $3,885,345,405,624.80
Bitcoin Share 59.67%
24h Market Cap Change $-6.20

AVAX bulls push price to $10 resistance; is a breakout imminent?

2min Read

Avalanche approached a zone of resistance from early September with bullish intent, offering traders with a dilemma- short the psychological resistance or long the breakout?

Avalanche climbs back to the early September resistance but bullish prospects are much brighter this time
Share this article

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

alt HD: Avalanche bulls run prices back to the $10 resistance as odds of a breakout look good

  • Avalanche has been strongly bullish over the past week
  • Traders can wait for a reaction at $10 and the lower timeframe charts to decide which way the sentiment was

Avalanche [AVAX] was on a strong upward run as the sentiment across the crypto market turned bullish. Bitcoin’s [BTC] performance was a major catalyst for this market-wide turnaround.


How much are 1, 10, or 100 AVAX worth today?


A previous analysis of Avalanche from AMBCrypto published on 5 September showcased the importance of the $10 as support. It noted that a move south to $8.6 was possible, which occurred on 25 September. At the time of writing, AVAX was trading at the $10 psychological level again- will we see a rejection?

The bearish breaker block at $10 was important once more

Avalanche climbs back to the early September resistance but bullish prospects are much brighter this time

Source: AVAX/USDT on TradingView

Highlighted by the red box, the H4 bearish breaker block from 22 August was retested as resistance. Yet, all the factors showed that a breakout was possible in the near term. The price action of AVAX outlined a bullish market structure.

The Relative Strength Index (RSI) has been well above the neutral 50 mark over the past week as prices climbed higher. Moreover, the On-Balance Volume (OBV) also witnessed hefty gains in recent days. Together, the indicators signaled bullish momentum and good demand.

Therefore, blindly entering a short position at the $10 mark could be risky. However, a rejection from this level accompanied by a shift in the lower timeframe market structure such as 1-hour could be used by courageous traders to enter a short position targeting the local lows at $8.6. This idea would be invalidated if AVAX closed an H4 session above $10.16.

The high demand in the spot market was a sign that Avalanche might be ready for a breakout past $10

Avalanche climbs back to the early September resistance but bullish prospects are much brighter this time

Source: Coinalyze

Over the past few days, the Open Interest shot higher, gaining $20 million as AVAX made rapid gains. They indicated bullish euphoria in the market, with buyers chasing green candles. The funding rate was positive. As well, the spot CVD trended higher and like the OBV suggested steady demand for the asset.


Is your portfolio green? Check the Avalanche Profit Calculator


Given the bullishness in the market, shorting AVAX might be too risky. A pullback to $9.5 in search of liquidity was possible, but an entire retracement of the rally with such strong bidding could be unlikely. Therefore traders can wait for a breakout past $10.16 and subsequent retest to go long, targeting the $11.2 resistance.

Share
Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.
Thank you for subscribing to Unhashed.