February 22, 2024

Consolidation to Come for Avalanche Before Price Move Prospects

Avalanche’s native token, AVAX, might soon be out of its stagnant position where it has been for a while and give clues to the next phase of its pricing. The token keeps on consolidating in a tight place, given so little latitude of expression. In the same time frame, while its price is going towards the height of a symmetric triangle on daily charts, the likelihood of significant movements in price continues to increase.

The Stiff Resistance on the Path of Avalanche

The Avalanche token is yet to break through major support or even resistance levels to clarify or get rid of the ambiguous perception it gives to traders and observers in the market.

The token of a Layer 1 protocol has in rent times watched its worth in the market skyrocket by close to 25% in the course of the last five days, shooting up from a low point of $65.50 to as high as $81.70. Avalanche keeps trading under a significant level of resistance in spite of the ongoing price action initiated by bulls.

The AVAX token seems to be a bit stuck between symmetric triangles which appears to have been in close formation since last December. A downward trend was observed to have developed along the oscillation path upwards while an upward trend was developing along the oscillating path downwards.

Calculations that Include Bitcoin’s Growth

This pattern of events calculates that an increase in demand that will push AVAX over the $83 resistance point might also drive its price up to $116, even as high as $126. On the flip side, however, it is so delicate that a break under the $66 level of support might lead to a sharp correction at $53.

Taking into consideration the ambiguous perception that AVAX gives to traders, it seems prudent to wait out to see a clear break of resistance or support levels before staking funds into the trade and on the token. AVAX’s ability to successfully breach any of the hurdles might lead to a 51.5% in price movement. The target is going to be determined by having a measurement of the range between the two high points of the triangle and then joining it to the points of breakout.

Though AVAX is yet to give a clear indication of which direction it is headed next, Bitcoin has started to give clues of a possible bullish disposition. A couple dealing with history is showing that the global leader among cryptocurrencies is having almost no resistance on its path while there are already new buying signals. A favorable outcome for Bitcoin could spill over to aid the market value of other cryptocurrencies and also help AVAX.  

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous post Cardano Price: ADA to Defend Critical $0.805 Support Level to Escape 50% Crash
Next post USD/JPY Climbs Up the 119.00 Mark Steadily, Close To Multi-Year High Levels