fxs_header_sponsor_anchor

AVAX price needs to reset before Avalanche hits $100

  • AVAX price faces massive rejection at the 100-day and 50-day SMAs, suggesting exhaustion of bullish momentum.
  • Investors can expect Avalanche to retrace 12% to $79.06 before rethinking the directional bias. 
  • A four-hour candlestick close below $75.01 could trigger a crash to $70.

AVAX price has taken multiple breathers over the past week, which has resulted in an exponential move. However, the uptrend is at risk of a U-turn as Avalanche faces two hurdles. 

AVAX price at make or break point

AVAX price rose 43% in nearly five days, setting up a local top at $94.17. While this run-up is impressive, Avalanche bulls had to retrace multiple times before reaching the recent swing high. Over the past four hours, the altcoin has surged 8% and is facing off against the 50-day Simple Moving Average (SMA) and the 100-day SMA at $88.99 and $93.86, respectively.

These two hurdles pose significant resistance to the bullish momentum and even threaten a reversal. Therefore, AVAX price needs to retrace to the immediate support level at $84.87 or $79.06 to replenish the buying pressure.

Doing so will allow the bulls to trigger another run-up that, hopefully, slices through the 50-day and 100-day SMAs to make a run for the $96.96 hurdle. Avalanche has tagged this level twice since January 6, leaving quite a bit of buy-stops resting above it.

Therefore, investors can expect AVAX price to sweep above the $96.96 barrier, bringing the total gain to 14%. In some cases, the uptrend could extend to $100 psychological barrier and form a local top around this level.

AVAX/USDT 4-hour chart

On the contrary, if AVAX price fails to slice through the 50-day and 100-day SMAs at $88.99 and $93.86, respectively, it will indicate a weakness among buyers.

A breakdown of the $84.87 support level will reveal that sellers are in control. However, a breakdown of the $75.01 barrier will create a lower low and invalidate the bullish thesis. In such a case, AVAX price could crash 7% and revisit the 200-day SMA at $70.07.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.