- Avalanche price was under pressure on Wednesday, with a breakthrough of short-term support.
- AVAX price saw a quick reversal as bulls pushed price action back above the trend line.
- As the uptrend is restored, expect a retest and break of $100 in the coming days.
Avalanche (AVAX) has been restoring its uptrend since the beginning of November after some sideways price action in October. In just a couple of days, AVAX price was able to gain 55% in value and hit $100 as a new all-time high. Since then, AVAX price has been fading slightly under some profit-taking, and the Relative Strength Index (RSI) is traded in overbought territory.
AVAX price sees buy-side support coming in a robust continuing uptrend
Avalanche price got hit with a correction that ran through the crypto space after US inflation numbers triggered doubts about current risk sentiment. First on the chopping block were cryptocurrencies that saw a quick and brief nosedive correction on Wednesday late in the European session. AVAX price is in the meantime back on the front foot with a strong rebound and back above the purple ascending trend line that is guiding the current short-term rally.
AVAX price correction should not come as a surprise, whether or not it is linked to the inflation print. The RSI was in overbought territory, a correction was due to happen, and with that, traders got confirmation that the monthly R1 at $76.12 was there as support. With the quick reversal, AVAX bears received a warning that bulls won’t go quietly without a fight.
AVAX/USD daily chart
Expect this reversal of the correction to continue, and for AVAX price to face $100 quite soon. Unfortunately, the further upside potential is a bit capped by the monthly R3 resistance level at $102.25, so expect limitations on this stretch of the uptrend, although much depends on global market sentiment and tailwinds.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Shiba Inu eyes positive returns in April as SHIB price inches towards $0.000015
Shiba Inu's on-chain metrics reveal robust adoption, as addresses with balances surge to 1.4 million. Shiba Inu's returns stand at a solid 14.4% so far in April, poised to snap a three-month bearish trend from earlier this year.
AI tokens TAO, FET, AI16Z surge despite NVIDIA excluding crypto-related projects from its Inception program
AI tokens, including Bittensor and Artificial Superintelligence Alliance, climbed this week, with ai16z still extending gains at the time of writing on Friday. The uptick in prices of AI tokens reflects a broader bullish sentiment across the cryptocurrency market.
Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge
Bitcoin price is consolidating around $94,000 at the time of writing on Friday, holding onto the recent 10% increase seen earlier this week. This week’s rally was supported by strong institutional demand, as US spot ETFs recorded a total inflow of $2.68 billion until Thursday.
XRP price could renew 25% breakout bid on surging institutional and retail adoption
Ripple price consolidates, trading at $2.18 at the time of writing on Friday, following mid-week gains to $2.30. The rejection from this weekly high led to the price of XRP dropping to the previous day’s low at $2.11, followed by a minor reversal.
Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge
Bitcoin (BTC) price is consolidating around $94,000 at the time of writing on Friday, holding onto the recent 10% increase seen earlier this week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.