Avalanche flipped a 180 after declining to 10-month lows in mid-June. The emerged bullish revival propelled the altcoin to reclaim crucial support areas. Meanwhile, the short-term superiority swayed to favor bullishness as the altcoin fixed its position beyond the 20-50-200 Exponential Moving Average.
However, buyers were yet to form enough strength to explore higher volatility past the POC (Point of Control. While publishing this blog post, AVAX changes hands at $29.62.
Avalanche 4Hr Timeframe
The alternative token witnessed a more than 124% return on investment (ROI) after resurging from the support at $14, touching a 2-month peak on August 8. This buying momentum had the altcoin flipping $27 to support from resistance.
Meanwhile, the 20-Exponential Moving Average and 50EMA remained northbound, especially following extended growth because of the bullish flag pattern. As buyers controlled the short-term bias, they would eye to maintain the 1-week trend-lie support.
AVAX has encountered revival challenges around $30 near the Point of Control in the previous week. Nevertheless, the week-long trend-line support and the 20 Exponential Moving Average have retained their higher troughs streak.
Thus, a possible break beyond $30 might position AVAX for extended upsides within the upcoming sessions. Such developments would have potential targets of $31 – $32. Failure to evade the POC boundaries might translate to stretched inactive phase.
Reasoning
The RSI (Relative Strength Index) supported bullishness, but the indicator struggled to overcome the 59-61 area. A spot beneath 59-61 might bolster sellers to ease buying momentum. Moreover, the AD (Accumulation/Distribution) formed higher highs while displaying a slight bearish divergence with the AVAX price. Also, the Chaikin Money Flow dropped beneath zero and supported easing buying superiority.
Final Thought
Considering the range barrier at $29 – $30 and the weak indications from technical indicators, buyers should catalyze significant buy volume surges to escape dull periods. Targets would stay as discussed. Moreover, investors should asses overall market sentiment for sound decisions.
The crypto market seems to cool after the latest upside. Bitcoin failed to overcome the $25K mark, changing hands at $24,468 during this publication. Nevertheless, buyers seem to have work to do for stable uptrends in the cryptocurrency space.
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