Avalanche Price Analysis: AVAX/USD set to recover within the next 12 hours

TL;DR Breakdown

Avalanche price analysis is bearish.
AVAX/USD set a higher high at $73.5 previous resistance.
Avax is currently at $62.4.

Today’s price analysis is bearish, as a retracement is required following a strong higher high set earlier today at $73.5. As a result, we anticipate AVAX/USD to fall in the coming days, with the nearest supports located at $68 and $65. However, as the coin is not showing signs of a strong pullback, there will likely be little reprieve before an extended decline.

Today’s high was at $73.5, and this represents a higher high from previous resistance. As a result, we anticipate declines in AVAX/USD in the coming days with supports located at $68 and $65, respectively. The downtrend will begin soon as a retracement is required following a strong rally earlier today. Currently, those declines are being held back by low volume, which may provide buying opportunities for those who missed out on the recent run-up. A downside break would likely lead to much lower prices after such a significant increase; it is highly unlikely that there will be much reprieve before an extended decline. The 50 EMA has not yet been breached, though the 100 EMA is now just -10% below this line.

The RSI looks weak at overbought levels, which indicates that further downward pressure will follow in the coming days.

The wave count of AVAX/USD looks like this: a bullish impulse followed by a corrective move followed by another bullish impulse up to ~$75 with another potential correction before another significant drop-off in following the current higher high.

Avalanche price movement in the last 24 hours: Bullish signals

The price of AVX/USD was relatively stable during the last 24 hours, trading between $66.36 and $72.88. Volume has increased by 74 percent, with trading amounting to $886 million, putting the coin in 14th position among all cryptocurrencies.

The AVAX/USD pair shows signs of forming a base around $65 following yesterday’s decline to $68 – with today’s retracement taking it back up to current levels – after which it may go on another sustained upward run toward resistance at $75, according to our analysis. Given these factors, any decline would likely be short-lived, followed by a subsequent rally.

Bullish scenario AVAX/USD has broken above the 50 EMA today, indicating that bullish momentum will take control in the short term following this upward push. A short-term correction is likely to take place following this strong rally. As indicated by the RSI, the long-term outlook remains bullish, which is overbought on the daily chart.

Bearish scenario – with such strong momentum behind the bullish move, corrections are likely short-lived and weak. A break below $65 would open up the potential for further declines with targets at $60 and $55 with next support at $51.5 (the previous day’s high).

AVAX/USD 4-hour chart: AVAX set to retest previous highs as support

On the 4-hour chart, we can see bearish momentum taking over the Avalanche price action as bulls are exhausted after a substantial advance earlier today.

AVAX/USD 4-hour chart. Source: TradingView

The current price above 100 and 200 EMAs with RSI over 70 suggests that AVAX/USD has some room left for further upward movement before some resistance levels are reached. However, given the substantial rise in volume, a retracement would not come as a surprise, although it would likely only set the stage for a longer upward movement.

Today’s first support for AVAX/USD will be at $66 (the previous day’s low). The nearest resistance will be $73.5 (the highest point reached during today’s trading session).

Avalanche Price Analysis: Conclusion 

Today’s price analysis for the Avalanche is bearish, as a retracement follows a strong higher high set at $73.5 earlier today. As a result, we anticipate AVAX/USD to continue retreating, with the nearest support level at $68.

Disclaimer. The information provided is not trading advice. holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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