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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

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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.

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.

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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