Why To Invest In Avalanche?
AVAX is an umbrella platform for launching decentralized finance applications, financial assets, trading, and other services. It aims to be something of a global assets exchange, allowing anyone to launch or trade any form of asset and control it in a decentralized manner using smart contracts and other cutting-edge technologies. Emin Gun Sirer founded it, and its main net launched in Sep 2020. After the launch, the price of Avalanche has seen significant gains.
An AVAX based project Verso Finance has recently seen a token offering that has been oversubscribed. This has pushed the AVAX price to the new high. It has also created a positive sentiment towards the Avalanche.
Technical Indicators Hints A Correction For The AVAX Price
Avalanche price shows a bullish on the weekly technical chart. On coming to the daily time frame, the coin has seen a jump of 20%. The bullish rally in the daily time frame can continue for more days. In contrast, while going upside, the coin can face resistance at $40. Meanwhile, on the downside, a bounceback can be seen from $24. It is trading above 50 and 100 Moving Average. The 50MA (RED) line is at $29.55, making it temporary support for the price. On the shorter time frame of the 4hr chart, the coin has formed a rising channel pattern. If the price makes a jump 15% above the channel, then a rally up to $50 can be seen.
RSI(Bearish): It is trailing at 78.55, showcasing its presence in the Overbought zone. It hints that the price can see a small downtrend in the 4-hour chart. The overall sentiment of the RSI is Bearish.
Conclusion
AVAX price has seen significant gains in the past. The recent news regarding the token issue of Verso Finance has pushed the further price high. One can wait for some correction before making any moves.
Technical Levels
Major Support:$24
Major Resistance:$40
