In a display of resilience, the price of Avalanche (AVAX), a highly touted cryptocurrency, has demonstrated a positive trend, despite remaining somewhat range-bound. Over the past 24 hours, the South African cryptocurrency market has noticed a 1.8% uptick in AVAX, although the weekly chart reveals a receding back to its previous position due to insufficient notable movement within the specified range.
Struggling to breach the resistance at the ZAR 262 level – a historically significant barrier, AVAX may potentially set off on a rally if it manages to exceed this resistance point. It is, however, crucial to note that AVAX’s price movement is closely tethered to Bitcoin’s performance, as observed with the pattern of other altcoins.
If Bitcoin’s performance dips to the ZAR 580,000 range, AVAX could find itself grappling to surpass the ZAR 262 mark. A technical outlook on AVAX shows a bias towards the bulls, but the momentum appears tepid. Indicators of demand and accumulation suggest a gradual upsurge in buying power. This rise in market capitalization for AVAX is a positive signal, yet should Bitcoin begin a retracement in its chart, AVAX may adopt a bearish stance.
At the time of writing, AVAX was trading at around ZAR 249. A recent formation of a lower high at this level signals a point of resistance. The immediate resistance level for AVAX stands marginally higher at ZAR 260. For a rally to be initiated and surpass the ZAR 262 mark, the price needs to break above this resistance.
However, AVAX might face another resistance level at approximately ZAR 251 before reaching ZAR 260. The coin needs to maintain trading above these levels for a significant period to accumulate a substantial upward momentum.
Conversely, support is seen at ZAR 243. If the price plunges below this support level, a decline to ZAR 239 could occur, negating the bullish scenario.
Technical Analysis: Following a recovery from the ZAR 243 support level, AVAX has seen an influx of buying interest. The Relative Strength Index (RSI) sits just above the 50-mark, implying a temporary retreat by sellers, with buyers assuming control.
Moreover, AVAX has ascended above the 20-Simple Moving Average (SMA) line, signaling a resurgence of demand and indicating that buyers currently command the price momentum in the market.
AVAX continues to exhibit buying strength, as reflected in the formation of buy signals on the daily chart. The Moving Average Convergence Divergence (MACD), an indicator of price momentum and shifts, has revealed green histograms associated with bullish signals.
In alignment with this, the Bollinger Bands, which measure price volatility and fluctuations, have expanded and trended upwards, suggesting that the price may strive to ascend on the upside, indicating a positive momentum and a potential upward movement in price.
*All currencies in the article have been converted to the South African Rand