Avalanche (AVAX) has recently shown a strong corrective rally, sparking renewed interest among investors and traders. This upward momentum follows a rebound from $23.49 and points to a potential challenge to the $30.34 resistance level.
As AVAX approaches this critical threshold, market participants are closely watching to see if the cryptocurrency can maintain its bullish trajectory and break through resistance. The $30.34 level is now the focal point to determine whether Avalanche can sustain its rally and continue to rise.
This article focuses on using technical indicators to examine the current price action of AVAX in order to forecast potential scenarios if the price reaches the $30.34 resistance level.
Analysis of Avalanche’s Current Rise
Currently, on the 4-hour chart, the AVAX price is actively trading above the 100-day simple moving average (SMA). Although the price is tending to consolidate, there is a possibility that it could extend its rise.
Additionally, while the 1-day Relative Strength Index (RSI) signal line is signaling that Avalanche price may go down, this is just a short-term move and the price may start to rise again at some point.
Meanwhile, on the daily chart, despite Avalanche shares still trading below the 100-day SMA, they are showing active bullish sentiment as they attempt a correction. upward movement to the resistance level of $30.34 with stable dynamics.
The formation of the 1-day RSI indicator also confirms this current bullish price sentiment, as the indicator’s signal line seems to have moved out of the oversold zone towards the 50% level. Therefore, it can be considered that the AVAX price may make a short-term pullback before testing the $30.34 resistance level.
Breakout or Rejection at $30.34?
When looking into the possible outcomes of Avalanche, it was found that if the AVAX price reaches the $30.34 resistance level and breaks through it, it could continue to rise to test the $36.15 resistance level and potentially move on to test other higher levels if it breaks through that $36.15 level.
However, if the crypto asset faces rejection at the $30.34 resistance level, it will start to decline towards the $23.49 support level. If this level is broken, it may continue to decline to test the $18.81 support level and then may move on to test other lower levels after a breakout below $18.81.
The price of AVAX was trading at around $28.23, up 1.01% with a market cap of over $11 billion and a trading volume of over $336 million at the time of writing. In the 24-hour period, the market cap of AVAX has increased by 1.01%, while the trading volume has decreased by 3.07%.
