Avalanche (AVAX) has recently experienced a notable price increase, climbing from approximately $23.47 to the level of $26.19 at press time. The price marks a significant surge of 30% in a week. This uptrend highlights a robust bullish sentiment and the trend features several pullbacks followed by rebounds, which are characteristic of a strong upward momentum.
Key support levels for AVAX include $23.47, where the upward movement initially began, and around $24.50, where the price consolidated briefly before continuing its ascent. These levels indicate where buying interest has been significant, providing a foundation for the ongoing rally.
Resistance levels are crucial for understanding the potential price ceiling. Currently, $26.10 serves as a primary resistance point, with the price having encountered some challenges and consolidation at this level before breaking through. Another significant resistance level is near $26.50, which could present a barrier if the uptrend persists. These levels will be critical for traders to watch in the coming days.
The significant surge in trading volume supports the price increase and suggests that the bullish trend may continue if this volume trend holds. High trading activity typically confirms the strength of a price movement, reinforcing the likelihood of sustained gains.
AVAX Holds Firm at Key Fibonacci Level, Analyst Predicts Potential Surge
Market sentiment around AVAX is currently positive, driven by several factors. Notably, there is anticipation regarding the Avalanche token unlock schedule, with fewer unlock events expected after 2024. This scheduled release is seen as more transparent compared to random token sales by other foundations. The predictability of these unlocks is viewed as a favorable feature, countering previous fears of potential selling pressure.
Moreover, announcements have further buoyed market sentiment. On August 22, Grayscale Investments launched the “Grayscale Avalanche Trust,” offering investors exposure to the Avalanche ecosystem. Additionally, Franklin Templeton expanded its Franklin Onchain U.S. Government Money Fund to include the Avalanche network. These moves reflect growing institutional interest and could contribute to the positive outlook for AVAX.
However, despite the optimistic sentiment, technical indicators suggest caution. The 1-week Relative Strength Index (RSI) for AVAX is at 45.92, nearing oversold conditions but not yet in that territory. Furthermore, the 1-week Moving Average Convergence Divergence (MACD) is trading below the signal line, hinting at potential short-term downside momentum.
