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10/07/24
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Technical Outlook on the Performance of Avalanche (AVAX)
The chart of AVAX/USD shows that there was a steady move to the downside prior to securing support close to the $22 area. The activity of the bears prompted the formation of a support base above $22 before the bulls initiated a new upside move.
AVAX’s price increased by more than 7 percent as the bulls were able to push it past several barrier levels close to $25. A look at its 1-hour chart shows that it broke past a major declining trend line with a barrier level at $26.5. The bulls were able to clear the 76.4% Fibonacci correction level of the fall from $27.17 swing high to $24.72 low.
Furthermore, AVAX moved clearly past the barrier level at $27 for entry into a positive area. The same chart shows that its current performance is at levels above $26.5, as well as above the 100 SMA.
The next barrier level on its way upwards is close to $27.75. Likewise, the immediate key barrier level is being formed close to the $28.7 area or the 1.618 Fibonacci extension level of the fall from $27.17 swing high to $24.72 low.
If AVAX breaks past $28.7, the bulls may be able to bring about more upside moves. In this situation, they may push AVAX steadily to the upside toward $30 or even $32. On the other hand, the failure of the bulls to keep its performance towards the upside, specifically above $27.75 or $28.7 may empower the bears to initiate a new move to the downside. The next support level on its way downward is close to $26.5.
The key support level is located close to the $26 area, as well as near the 100 SMA. If AVAX breaks beneath $26, the bears may be able to pave the way for a fall towards $24.70. The immediate key support level exists close to $22.5.
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