Connect with us
Active Currencies 14740
Market Cap $2,582,087,605,646.09
Bitcoin Share 51.53%
24h Market Cap Change $0.42

Will Avalanche [AVAX] retest the $19.5 level before offering further gains

2min Read
Avalanche presents the possibility of a short-term pullback before a move to $22

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.

Bitcoin [BTC] has broken above the $20.4k-$20.5k region which had rebuffed it a week or so ago. Over the weekend, reduced volume and heightened volatility could arise. In the short term, both Bitcoin and Avalanche [AVAX] have a bullish bias.

A pullback to $20.8k or even $20.4k for BTC could see AVAX dip as well. The price charts of AVAX highlighted how important $19.5 and $20.5 can be in the days to come.

AVAX- 4-Hour Chart

Avalanche presents the possibility of a short-term pullback before a move to $22

Source: AVAX/USDT on TradingView

In the past two weeks, the price has been unable to break above the $20.5 resistance zone, the lower red box. At the same time, the $18-$18.7 region has acted as a solid support zone. At the time of writing, the price was back at resistance.

Further to the north, another supply zone lies at $22. In August, this zone offered support but was broken. It has not yet been visited yet. The strong move below this level indicated the possibility that, if the price revisits the $22 zone, selling pressure could overwhelm the buyers.

The Awesome Oscillator (AO) was above the zero line to show bullish momentum. The Chaikin Money Flow (CMF) was also above the +0.05 mark, to show sizeable capital flow into the market.

AVAX- 1-Hour Chart

Avalanche presents the possibility of a short-term pullback before a move to $22

Source: AVAX/USDT on TradingView

The four-hour charts did not signal a pullback. In fact, they showed short-term bullish strength. So too did the 1-hour charts. Although the Relative Strength Index (RSI) was back at 54, it still suggested a bullish bias for AVAX. The On-Balance Volume (OBV) has also been rising slowly over the past few days.

Of particular interest was the $19.2-$19.6 area marked in cyan. In early September, it served as a resistance to a short-term rally. Since then, this zone has been cleanly broken on three occasions. Moves with high impetus charged up and down past this area with hardly a retest.

It was possible that a move southward could materialize to test liquidity in this area. Such a move could offer a good buying opportunity, with a stop-loss below the $19 mark. But it must be remembered that a pullback need not occur, and AVAX could blast higher toward the $22 region as well.

Conclusion

Bitcoin was able to stay well above the $20.8k support level and showed signs of further gains toward the $22.4k region. If Bitcoin continues to climb, Avalanche has a good chance of following. A dip toward the $19.5 mark can be a buying opportunity as well. The $20.5 and $22 are the significant resistance zones in the vicinity of AVAX.

Share

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.
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.