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- 1 Avalanche (AVAX) crypto price retested the crucial support zone of $30.
- 2 The selling pressure is now easing, and buyers have entered the battle.
Avalanche (AVAX), the layer one blockchain platform for decentralized applications, has settled the gains of around $35. The charts display a double bottom formation.
The broader crypto market looked stable during the intraday session, and selling pressure decreased slightly. This week, the AVAX price hovered around the narrow range between $32- $35 and faced 200-day EMA resistance.
At press time, the Avalanche crypto (AVAX) price traded at $33.74 with an intraday gain of 2.89%, reflecting mixed cues and staying in the bearish region. It has a monthly return ratio of -28.90% and 94.35% yearly.
The pair of AVAX/BTC is at 0.000569 BTC, and the market cap is $12.89 Billion. Analysts are neutral and suggest that the AVAX crypto may replicate a bounce and will head toward the $50 soon.
Is Avalanche (AVAX) Set For A Bounce Ahead?
On the daily charts, the Avalanche price held the gains and is anticipating a rebound in the following sessions. For weeks, the AVAX crypto has remained in range and failed to register notable movements.
Source: TradingView
The path shown on the charts signifies the noteworthy uptick and the price action implies that the correction has been made. Meanwhile, buyers need to break and sustain above the 200-day EMA to execute the reversal.
Will Development Activities Favor Avalanche Price?
Per the recent tweet by @Entanglefi on the X platform, Entangle will go live on Spaces and partner with AVAX for future-proof blockchain.
Entangle is going live on Spaces with @avax.
— Entangle (@Entanglefi) May 2, 2024
Join us to discuss The Future-Proof Blockchain.
May 3rd – 4pm UTC.https://t.co/EfptudLihS pic.twitter.com/sSHQZ3fzac
Source: Twitter
Over the past weeks, the development data showcased a significant decline, noted at around 185, signifying low investor interest.
Source: Santiment
However, the derivative data signifies short covering data, leading to a bounce of over 2% in the intraday session. The open interest dropped over 2.38% to $196.47 Million.
What Do Technical Indicators Suggest?
Per the analysis of the RSI indicator, the RSI curve is still in the oversold region. Still, a positive crossover was noted, suggesting a potential reversal toward $50 for the upcoming sessions.
Furthermore, the crypto market has absorbed the selloff and is trying to fold the gains, which might favor the rebound ahead. Conversely, if the bearish trend persists, the immediate support zone of $30 will be a make-or-break zone.
Per the Fibonacci retracement levels, the AVAX price is still hovering below the 38.2% zone, and a decline in price volatility was noted.
Conclusion
The Avalanche (AVAX) price trade is awaiting a bounce from the support zone of $30 and is driving the bounce. Moreover, the price trades close to the prompt trendline hurdle of $35, and a breakout is anticipated.
Technical Levels
Support Levels: $30 and $25
Resistance Levels: $38 and $42
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
