Avalanche (AVAX) is trading around $12.47, and the market is showing early signs of stabilization after a recent downturn. Selling pressure has started to slow, and improving global sentiment, particularly after reduced tensions between the USA and Europe, is helping the crypto market recover.
AVAX Chart (Source TradingView)
Although the mood is getting better, AVAX still faces a key technical barrier. On the 4-hour chart, the price is below the 50-period Exponential Moving Average (EMA50), which is currently near $13. This level is a strong resistance. Each time AVAX nears this zone, sellers step in and push the price down.
However, if AVAX can break above $13 and maintain that level, it could lead to a short-term recovery toward the $15 zone. This area would be the next major target for buyers.
What the Indicators Are Saying:
Some technical indicators are starting to hint at a possible shift in momentum.
MACD (4H): The MACD is showing positive crossovers, which suggests that bearish momentum is weakening. Buyers are slowly gaining strength.
RSI (4H): The RSI is currently in the neutral zone. This means the market is not overbought or oversold. There is room for a move higher if buying volume increases.
These signals don’t confirm a rally yet, but they suggest that downside pressure is losing strength.
Strong Support Holding at $11.88
On the downside, AVAX has built a solid support base around $11.88. This level has been tested multiple times and continues to hold. As long as the price stays above this support, the chances of a bullish bounce remain.
If this support breaks, AVAX could slide into a deeper correction.
Conclusion
AVAX is at a key decision point right now.
- If it breaks and holds above $13 (EMA50 on 4H), it could move toward $15.
- Staying above the $11.88 support level is crucial to maintain the bullish recovery scenario.
For now, traders should pay close attention to these two levels. The next big move for AVAX will likely begin once the price clearly breaks either the resistance at $13 or the support at $11.88.
Disclaimer: This content is for educational purposes only and not financial advice. Always do your own research before making investment decisions.
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