Avalanche (AVAX) has experienced a significant price increase and has surpassed a crucial barrier in recent trading sessions. Over the past 24 hours, AVAX has seen a 6% increase, while its weekly chart shows a remarkable surge of over 17%.
However, the technical outlook for Avalanche is indicating mixed signals with a slight tendency towards bearish market dynamics. Although attempts have been made to stimulate demand, no significant improvement has been seen, and accumulation remains low according to the chart.
While Bitcoin has once again reached the $30,000 price level, this has brought optimism to the altcoin market, including Avalanche. It is important to note that Avalanche and other altcoins have not fully overcome their challenges yet.
To identify an upward trend, AVAX must surpass the crucial barrier of $13 for the bulls to take control of the price. Furthermore, the stability of the Bitcoin price is crucial for overall market strength. AVAX has experienced a decrease in market capitalization, indicating reduced purchasing power, as reflected in the chart.
At the time of writing this article, AVAX was trading at $12.90. Avalanche is currently making efforts to prevent a price decline after breaking through the $12 resistance level. Although AVAX briefly moved above $13, it experienced a slight value loss during the last trading sessions. In order for the bulls to take control, Avalanche must surpass the $13 mark and break through the resistance level of $15.
If AVAX continues to trade around the current price level, it could be pushed towards its next support at $12.40, and possibly even below $12. This is because the traded volume of AVAX in the last session was red, indicating strong selling pressure.
On the one-day chart, after successfully breaking the $12 mark, AVAX experienced a gradual recovery of purchasing power. However, at the current moment, selling pressure has gained the upper hand. This is indicated by the Relative Strength Index (RSI) being below the midline, suggesting that sellers have the upper hand in the market.
Additionally, AVAX has fallen below the 20-Simple Moving Average line, further confirming the dominance of sellers in boosting price dynamics. For a revival of demand, it is crucial for AVAX to rise above the $13 mark and sustain this upward movement.
On the one-day chart, AVAX formed buying signals that indicate a possible price reversal. The Moving Average Convergence Divergence (MACD) has formed green histograms, indicating positive price dynamics and potential buying opportunities.
However, these buying signals may diminish if the price does not stay above the $13 resistance level. In terms of price volatility and fluctuations, the Bollinger Bands have expanded. This expansion suggests that AVAX may be subject to increased volatility in the upcoming trading sessions.
Image source: Unsplash, Charts by TradingView.com
