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Avalanche [AVAX] enters a resistance zone

Avalanche has been bearish in May, but over the weekend, AVAX was able to convert the R375,29 level from resistance to support. Furthermore, Avalanche continued to rise toward R435,30 as demand increased.

The previous day, Bitcoin exploded out of the R446 177-R 475 715, zone to trade at R492816. Significant resistance is found to the north at the R50 6808 and R 544 119 levels. After two weeks of consolidation at R466 388, it appeared like Bitcoin might push higher toward the R559 665-R590 758 zones.

2 Hour AVAX Chart

Avalanche has reached a zone of resistance, but buyers still have some hope.

On May 12, the price fell to R 365,49 before rebounding toR572,10. However, over the last two weeks, the price has progressively declined, falling below the R 375,29 support level.

However, Bitcoin bulls were able to battle back from the range lows after falling below R 439 959 over the weekend, and Avalanche was rising on the price charts alongside the king of crypto. AVAX has flipped R 375,29 to support and is currently trading within the R435 resistance zone (red box).

This zone served as support the previous week, and if AVAX can climb past it and solidify it as support, another push higher toward R560 is possible.

Avalanche has reached a zone of resistance, but buyers still have some hope.

The RSI was able to bounce back above the neutral 50 line, indicating that momentum is once again bullish. It was also able to maintain above 60 for a few days, indicating that momentum was strong.

The OBV has also climbed in recent days. The two orange lines on the OBV are levels that buyers like to see broken on the lower timeframes. This would signal strong buying pressure and consistent demand driving AVAX higher.

The AVAX higher timeframe trend, such as D1, remained bearish. However, the currency still had a lot of upside potential before a possible resumption of the higher timeframe slump.

Avalanche [AVAX] enters a resistance zone

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at [email protected]

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