South Africa’s growing interest in cryptocurrencies has led to an increased focus on a broad range of digital assets beyond Bitcoin (BTC). One such altcoin is Avalanche (AVAX), which has been showcasing promising momentum, albeit remaining within a specific range. Over the last 24 hours, the altcoin witnessed a moderate growth of 1.8%. However, on a weekly scale, it has been trapped within its established range, erasing its gains.
AVAX faces a substantial hurdle in breaching the R262 resistance level, a mark that has historically proven tough to surpass. A breakthrough above this resistance could potentially trigger an upward rally. Nonetheless, it’s important to note that AVAX’s price fluctuations are closely tied to Bitcoin’s performance, much like other altcoins.
Should Bitcoin experience a slump to around R579,410, AVAX might face challenges in surpassing the R262 mark. From a technical viewpoint, AVAX leans towards bullishness, although the momentum isn’t particularly robust.
Demand and accumulation indicators point towards a slow yet steady increase in purchasing power. AVAX’s market capitalisation has grown, signalling a positive trend. However, if Bitcoin recedes on its chart, AVAX could potentially turn bearish.
At the time of writing, AVAX was trading at around R249, creating a lower high at this level, which indicates resistance. The immediate resistance lies slightly higher at R260, and a breakthrough would be required to initiate a rally beyond the R262 mark.
Before reaching R260, AVAX might face another resistance level around R251. The altcoin must sustain trading significantly above these levels to gain substantial upward momentum.
On the downside, support is located at R243. If the price drops below this level, it may decline to R239, negating the bullish scenario.
Following a rebound from the R243 support level, AVAX has experienced heightened buying interest. The Relative Strength Index (RSI) is just above the 50-mark, suggesting a temporary retreat of sellers and the emergence of buyer control.
Moreover, AVAX has climbed above the 20-Simple Moving Average (SMA) line, indicating a resurgence of demand and current buyer-driven price momentum.
Continued buying strength is apparent with AVAX, as buy signals are forming on the daily chart. The Moving Average Convergence Divergence (MACD), which measures price momentum and shifts, displays bullish signals with green histograms.
These indicators suggest positive momentum and potential upward movement in price. Moreover, the Bollinger Bands, which measure price volatility and fluctuations, have expanded and moved upwards, suggesting a potential upward attempt in price.
As South African investors continue to diversify their crypto portfolios, monitoring the developments of altcoins like Avalanche could prove fruitful. Notwithstanding the Bitcoin-related uncertainties, AVAX’s prospects look intriguing.
*All currencies in the article have been converted to the South African Rand