Aaryamann Shrivastava
FXStreet
- AVAX price bounced off of the multi-month low of $10.68 to climb the charts by 11.97% this week before declining to trade at $11.79.
- If AVAX buyers push the price above $12.18, the altcoin might have a shot at initiating recovery.
- Should bears take command, AVAX price could slip to $11.13, falling below, which would invalidate the bullish thesis.
AVAX price made no significant change in the last two days; however, the altcoin fared against expectations on Friday. Following the news of Grayscale dumping the asset from its Digital Large Cap, Avalanche was expected to make some movement.
However, the altcoin only dipped by 3% during the intra-day trading hours before being reported normal.
AVAX price holds its own
AVAX price, despite the aforementioned development, painted no green on the charts as the altcoin exchanged hands at $11.82. The cryptocurrency earlier this week registered back-to-back green candles as the altcoin climbed the charts by almost 12%.
If this momentum continues, AVAX price would be able to breach its immediate resistance at $11.90 and set sight at $12.18. Reclaiming it as a support floor will allow Avalanche to initiate recovery leading the altcoin to rise above $12.59.
By the presence of the Parabolic Stop and Reverse (SAR) indicator, the same seems likely. Although generally, the presence of the indicator above the candlestick is considered an indication of a downtrend, the proximity of the indicator and candlestick evinces that it will be an uptrend.
However, if bearish winds intensify and the price begins declining, it would be tagging its immediate support at $11.40, slipping below which would lead it to tag the critical support level at $11.13.
A daily candlestick close below this level would invalidate the bullish thesis and result in AVAX price tagging the lows of $10.68.
AVAX/USD 4-hour chart
Thus investors looking to jump in following the almost 12% rally must observe the above-mentioned levels to ensure no losses from the crypto market’s volatility.
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