Avalanche marked a new yearly high by reaching $24. Let’s see together the future prospects for the AVAX price.
Avalanche Situation (AVAX)
While Avalanche’s price has been falling for over a year, AVAX marked a new annual ATH after rebounding from its lowest level ever since 2021. It therefore recorded an increase of over 180% in just over a month. This latest impulse naturally came to counter the bearish structure that AVAX has respected since the summer of 2022. In addition to technical factors, this increase may have been fueled by news perceived as positive by investors.
Today, AVAX price is trading around $21. We can see that it has not really crossed its last peak, which still suggests a continuation of this downward trend. However, the 50 and 200 day moving averages demonstrate an upward trend change, now crossing higher below Avalanche’s current price. Oscillators show persistent bullish momentum, although the appearance of some signs of weakness can legitimately sow fear among investors.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on derivatives (AVAXUSDT)
AVAX’s open interest has been revised upwards like its price. The latter has increased by almost +272% since the start of the month with an addition of positions (Long and short) of around +158 million dollars. This reflects an increase in trader participation, particularly on the buy side. As for liquidations, we can see that they are not really significant, being distributed between both buyers and sellers.
Assumptions for the price of Avalanche (AVAX)
If the price of AVAX manages to return and remain above $23, we could anticipate a bullish continuation up to the $30 level. The next resistance to take into account, if the bullish movement continues, would be between $38 and $40. At this stage, this would represent an increase close to +90%.
If the price of AVAX does not manage to cross and remain above $23, we could envisage a return to $16, or even $15. The next level to take into account, if the bearish movement continues, would be around $13 and $12. At this stage, this would represent a drop close to – 43%.
Conclusion
Avalanche suffered a significant increase countering its bearish structure. From a technical point of view, this suggests the possibility of an upward trend reversal. However, a corrective phase is not spared. So, in this scenario, it will be important to carefully observe the price reaction on the different identifiable levels to confirm or not the different hypotheses made. Beware of potential “fake out” and “market squeeze” in each situation. Additionally, let’s not forget that these scenarios are based solely on technical analysis. The price of cryptocurrencies may change more or less quickly, depending on other more fundamental factors.
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