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Avalanche Price Prediction: 25% Gain Can Wiped Out Soon, Bulls Are Still Offensive

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Avalanche Price Prediction
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  • The Avalanche overcame the bearish price structure a few days back.
  • Jan 11 saw the most volatile day for the speculators in the last 2 months.
  • The oversold RSI indicator is turning downside on the daily price chart.

Avalanche price with 27% gain shows upcoming correction for sideways momentum signals on daily price chart. Market volatility eased after a week of high volatility. As of now, Avalanche (AVAX) is trading in a narrow range since last night where the bears could push the market for another decline.

After 22 consecutive weeks of downtrend, the bulls successfully reversed the bearish trend in the new financial year. As a result, the AVAX price is up about 41% so far this month. Meanwhile, the AVAX token charts suggest a correction phase while speculators have placed bids at the $15.40 mark at the time of writing.

The price action formed a lower-low and lower-high trendline on the charts since the month of August. The downtrend noted a 52-week low at the $10.54 mark. Near the conceptual rounding level of $10, buyers have a demand zone. Later, the avalanche overcame the bearish price structure seen a few days ago (above chart).

After the breakout, the buyers continuously pushed the AVAX crypto up and it registered a gain of over 40% in the past few days. Thus the market capitalization at the time of writing was recorded at $4.8 billion. Meanwhile, January 11 saw the most volatile day for the speculators in the last 2 months. Later, the trading volume dropped by 44% overnight.

At that point, AVAX bulls were struggling at the 0.236 level of the Fib retracement (at $15.5). The bulls must hold the digital asset at this support level to reach the next round level (0.5 Fibonacci retracement level) at $20.

After a long pullback, the price of Avalanche successfully broke above the 20, 50 and 100 day exponential moving averages on the daily chart. Specifically, the oversold RSI indicator is turning downside on the daily price chart.

Conclusion

Avalanche (AVAX) Price is consolidating above the 100-day exponential moving average. This important support level is necessary for another rally. But the decreasing volatility could spell trouble for the bulls.

Support level – $15 and $10

Resistance level – $20 and $30

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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