Avalanche (AVAX) is currently trading at $33 and strong support appears to have been established at this level. Often, Avalanche is being bought up in the $30-$33 range, indicating a possible bottom formation on the daily chart. However, one existing problem is that the altcoin is struggling to overcome the resistance at $39.3. The price was also rejected there last week and is continuously making lower highs.
This suggests that the price is continuing to contract and a breakout is very likely. Below the current price is the important 800-day EMA, which runs almost parallel to the current price. If Avalanche loses support at $30 and falls below the 800 EMA, a price move up to $25 could become likely, which is the next interim high.
Avalanche: Indicators confirm the discovery phase
There is also a strong negative distribution, which is reflected well in the volume profile (VRVP). Should Avalanche break above $40, an impulsive move towards $50-$52 is very likely.
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The indicators on the daily chart suggest that Avax is still in a discovery phase. The MACD remains in bearish territory and the positive momentum is decreasing. Trading volumes have been steadily decreasing since March, which also indicates a strong move ahead.
The RSI is in the slightly oversold area at 40 points.
In terms of liquidity, the Liquidity Map (Bookmap) data shows that below the current price at $30, there is a large liquidity block with more than 300,226 Avax ready to be purchased. Above, liquidity starts from $40 with around 7,121 Avax and a larger block for sellers is in the $60-$70 range. This suggests where Avalanche’s long-term trajectory could be headed with liquidity already present at $70.
The behavior of Avax and other altcoins also depends heavily on developments in Bitcoin. If Bitcoin has found its bottom, this could result in strong upward movements across the entire altcoin market.
Over
Bastian Keller has been operating independently in the Forex market since 2015 and has been a full-time trader in the crypto market since 2018. He actively shares this expertise on various social media platforms, especially on his YouTube channel “Bitbull Trading“, with more than 59,000 subscribers.
In addition to his YouTube channel, he has already built a community with more than 4,000 active members. This offers both beginners and experienced traders the opportunity to improve their skills to a professional level. The focus is on operating profitably in the market in the long term, regardless of your location.
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