Avalanche has been doing well in terms of price performance for the last six weeks, and there’s an expectation for the strong upward trend to continue. Recently, Avalanche (AVAX) retested an important level on the price chart, indicating a favorable situation for the bulls, with a potential move towards $30 on the horizon.
Notably, Avalanche also experienced a substantial increase in NFT (Non-Fungible Token) sales volume. The Dokyo collection alone achieved a volume surpassing $1.4 million, contributing to Avalanche’s highest NFT sales volume in three months. With both price action and NFT sales on the rise, confidence in the asset remains high.
Avalanche (AVAX) Eyes $24.6 Amidst Former Resistance Turned Support
Highlighted in green on the charts, the $19-$20.7 zone, previously a resistance area, turned supportive in mid-November, setting the stage for potential upward moves.
Source: AVAX/USDT on TradingView
Despite expectations of volatility within this zone due to lower timeframes seeking liquidity, a dip on November 21st occurred, serving as a retest of the 61.8% Fibonacci retracement level (pale yellow). AVAX successfully climbed above the $20 mark thereafter.
Analyzing the one-day chart, traders find encouraging signs for a potential move to $24.6. While the Relative Strength Index (RSI) has shown a slowdown in bullish momentum over the past two weeks, the overall market structure remains positive. Additionally, the On-Balance Volume indicates that selling volume has not dominated, providing further support for the bullish outlook.
Avalanche (AVAX) Liquidation Analysis Points to Key Levels of Interest
An examination of the liquidation levels heatmap for Avalanche (AVAX) revealed notable areas of interest at $18.7 and $23.1. These levels showed the highest number of estimated liquidations, though, considering recent price movements, a dip to $18.7 appeared unlikely. Beyond the $23-$24 zone, the density of estimated liquidations decreased.
Furthermore, the $22 level has acted as resistance since September 2022. Thus, surpassing these levels indicated a robust bullish sentiment. The next significant resistance awaited at $30.8, with limited noteworthy resistance levels between $24 and $30. This analysis provided insights into potential price dynamics and key levels to watch for in AVAX’s market movements.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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