Can AVAX Overcome $34.85 Barrier? Indicator Analysis Reveals Potential Outcome

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

As of the latest update, Avalanche [AVAX] was valued at $34.05, registering a 0.54% uptick in the last 24 hours and a 1.52% increase over the past week. Its trading volume over 24 hours sits at $87.5 million, indicating stable market activity.

During the previous week, AVAX experienced price fluctuations within the range of $31.00 to $37.01. In the most recent 24-hour period, prices oscillated between $32.54 and $35.62.

In spite of some price volatility, the token has largely traded within a tight range, implying that traders are keenly monitoring critical support and resistance levels for potential market direction signals.

Crucial Levels and Indicators Point Towards Sideways Movement

Examining the 1-hour chart, AVAX has rebounded from the lower Bollinger Band located near $33.00, a significant support threshold. The current price is below the upper Bollinger Band at $34.85, which acts as an immediate resistance level.

A breakout above $34.85 might open doors for further upward mobility towards $35.50 or even $36.00.

Indicators of momentum offer conflicting signals. The Relative Strength Index (RSI) stands at 54, indicating a neutral to slightly bullish market sentiment.

Furthermore, the Moving Average Convergence Divergence (MACD) has turned positive, with a recent bullish crossover hinting at a potential continuation of the upward trend.

Nevertheless, the strength of this uptrend remains moderate, underscoring the necessity for a breakout above $34.85 to confirm a clearer bullish outlook.

Evaluating Profitability Metrics Signals Selling Pressure at Higher Levels

According to the “In/Out of the Money” diagram, around 59.5% of AVAX holders are currently in a profitable position, with their average purchase prices clustered between $19.90 and $26.50.

This profitable range could trigger selling activity as these holders might seek to capitalize on gains as prices appreciate.

Conversely, approximately 34.33% of holders are facing losses, primarily in the range of $35.67 to $38.99. These levels could act as resistance zones as holders may sell off to recover their losses.

Moreover, 6.17% of addresses fall into the “At the Money” category, indicating a narrow trading range closely aligned with the current price, suggesting a phase of consolidation.

Analysis of Large Transactions Indicates Moderate Market Activity

Data sourced from IntoTheBlock reveals that there were 542 large transactions recorded in the preceding 24 hours, down from the 7-day high of 696. While this signifies moderate activity, a rise in large transactions could imply renewed interest from significant market players.

Large transactions, often associated with institutional or whale investors, currently remain at subdued levels compared to historical peaks.

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