AVAX poised to break $34.85 resistance, indicators suggest

Will AVAX break the $34.85 resistance? Here’s what the indicators tell you

Avalanche [AVAX] was priced at $34.05 during the latest update, showing a 0.54% rise in the past 24 hours and a 1.52% increase over the last seven days. The 24-hour trading volume is currently at $87.5 million, indicating consistent market activity.

Throughout the previous week, AVAX experienced price fluctuations within the range of $31.00 to $37.01. In the last 24 hours, prices oscillated between $32.54 and $35.62.

Despite some price volatility, the token has mostly traded within a narrow range, suggesting that traders are monitoring essential support and resistance levels for market direction cues.

Crucial Levels and Technical Signals Point Towards Sideways Movement

Examining the 1-hour chart, AVAX has bounced back from the lower Bollinger Band near $33.00, a critical support level. Prices are currently below the upper Bollinger Band at $34.85, acting as immediate resistance.

A breach above this level could potentially lead to further advances towards $35.50 or even $36.00.

Various momentum indicators are offering mixed signals. The Relative Strength Index (RSI) is positioned at 54, indicating neutral to slightly bullish conditions.

Furthermore, the Moving Average Convergence Divergence (MACD) indicator has turned positive, with a recent bullish crossover suggesting a possible continuation of the upward momentum.

Nonetheless, the strength of this uptrend remains limited, signifying the necessity of a breakout above $34.85 for clearer bullish confirmation.

Profit Indicators Highlight Selling Pressure at Elevated Levels

Based on the “In/Out of the Money” data, around 59.5% of AVAX holders are currently in profit, with their average purchase prices concentrated between $19.90 and $26.50.

This profitable zone could induce selling pressure as these holders may opt to capitalize on gains as prices rise.

Conversely, 34.33% of holders are facing losses, particularly in the price range from $35.67 to $38.99. These levels may pose as resistance areas, as holders might sell to break even.

Meanwhile, 6.17% of addresses are tagged as “At the Money,” indicating a narrow trading range closely aligned with the current price, suggesting a phase of consolidation.

Analysis of Significant Transactions Suggests Moderate Activity

Data from IntoTheBlock reveals that there were 542 large transactions recorded in the last 24 hours, a dip from the 7-day peak of 696. This indicates moderate activity, while an increase in large transactions could signify renewed interest from major market participants.

Large transactions, often linked to institutional or whale activity, currently remain at subdued levels compared to historical highs.

Leave a Comment