In this new crypto nugget On Wednesday, our date to analyze an altcoin, we will be interested in the cryptocurrency AVAXthe native token of Blockchain avalanche. The network continues to develop gradually on the fundamental aspect. But, despite all this, is it also positive on the technical aspect of the course? Today’s goal is to identify the main levels that need to be monitored and, possibly, the bias to take into account AVAX for the next few weeks.
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AVAX is currently locked into a weekly range
First, we can see the power of downward trend who registered during the year 2022 on AVAX. L’actif a eu l’occasion de retourner en fin décembre sur le point bas qui avait été inscrit durant l’été 2021. Actuellement, l’actif évolue dans un range qui s’est formé durant le mois d’octobre et novembre avec a upper limit at $18.50 and a lower bound to $12.
After a bearish deviation back to $10.54, AVAX it has suddenly re-entered the range and is now below the upper limit it was discarded on a few months earlier. Having failed to break free of this resistance for three weeks, is that a waste of time and should we put bullish targets aside?
As long as the asset manages to stay above the pivot level of the tidy in $14.40we can preserve the bullish bias on the asset with the breakout of tidy as a weekly goal. This is the level to watch in the range since the price moves below the $14.40 it will testify to the strength of the sellers and drive the price back to the lower bound. Furthermore, it seems important to point out the presence of an Equal Low to $9.32 where the price may rebound to seek liquidity.
Bullish momentum is running out on AVAX
In this second part of the analysis, we will use a smaller time scale to better understand the price swing over the past few days. What needs to be identified is the obvious shortness of breath bullish momentum on the good. For several days now, all attempts to break resistance have been canceled, which has resulted AVAX to inscribe wicks several times.
However, the asset somehow manages to preserve the uptrend. In the coming days, the ongoing price compression from last week will be resolved by a powerful movement. Although below resistance, AVAX has every chance of making a bullish breakout of the range. If it succeeds, it will go to first $20.45/$20.65 where there is resistance in confluence with the EMA200.
However, if AVAX fails to free itself from its upper limit and reverses the trend by returning below the $15.80 (previous low), the asset will move decisively towards the pivot level which I have deliberately widened on this daily chart so that I can have a larger intervention zone at $14.20/$14.60. This is a level where the asset could rebound and despite many signs of a trend reversal that could be registered, bullish momentum could reappear in this scenario.
Bouncing against bitcoin is tricky but not impossible
To close this technical analysis, we can look at the asset’s price against the king of cryptocurrencies. You can probably ask what is the point of leaning on this couple? At a time when stablecoins were not developed in the cryptocurrency ecosystem, the latter were analyzed against them bitcoins which, still today, is the market leader with the largest capitalization. It is a relevant way to determine where an asset stands relative to bitcoin, whether it is underperforming or outperforming.
Currently, the asset has been able to bounce from support to 6,550 satoshis quite quickly regaining the previous support at 7,380 satoshis. Having had the opportunity to retrace a resistance, the challenge for AVAX is to break above this level to register in a favorable situation against Bitcoin. However, if the asset fails to do so and falls back to 6,550 satoshis, the ability to AVAX bounce again as a break-down will likely result in significant underperformance. For now, it is best to have a bullish bias
Here we are at the end of this analysis of AVAX. Currently under resistance to dollarthe challenge of the next few days lies in its ability to free itself from the resistances to continue a bullish momentum which, in the last few days, has run out. Against Bitcoin, AVAX is in good shape, but despite everything, it is time for him to recover and prove his strength against the king of cryptocurrencies. This would be a perfect opportunity for the asset to move higher. However, if it fails, other than the pivot level, nothing will stop the asset from returning to the lower bound at $12.
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