Avalanche, a prominent player in the cryptocurrency market, has recently been experiencing significant fluctuations in its price. This digital asset has been on a tumultuous journey, with its value swiftly rising to a peak of over $22.3, followed by a steep decline. Notably, a crucial development has been forming a support base around the $17 mark, suggesting the possibility of an upcoming bullish breakout.
Altcoin Sherpa, a prominent crypto analyst, shared a Twitter post providing the current technical analysis on AVAX:
$AVAX: I think this trades lower but it's cool to see this as the first bullish EMA cross on the 1D since early 2022. Interesting entry probably $17. #AVAX pic.twitter.com/nQPD8wA3uB
— Altcoin Sherpa (@AltcoinSherpa) November 26, 2023
This support level is critical, as it marks the first bullish Exponential Moving Average (EMA) crossover for Avalanche since the early months of 2022. This technical signal has instilled renewed optimism among investors and market analysts, anticipating further gains for Avalanche in the forthcoming days and weeks. The $17 threshold, which had previously acted as a barrier, is now perceived as a firm foundation, potentially paving the way for an upward trajectory in Avalanche’s market value.
However, today’s market for Altcoin is navigating a bearish trend, with red candlestick domination. The selling pressure has caused a slight dip in Avalanche’s value, currently trading at $21.1, according to CoinMarketCap. Nevertheless, a bullish momentum is expected to materialize in the long term for this cryptocurrency. Despite a 2.70% drop in its value over the past 24 hours, there’s been a substantial increase of over 30% in its trading volume, currently at $1.43 billion.
This surge in trading volume indicates a growing investor interest in Avalanche and an overall positive sentiment towards the digital asset. Currently, AVAX is trading in proximity to the Simple Moving Average 10, which stands at $21.00, and slightly above the EMA 10 at $20.50. This suggests that a bullish breakout could be on the horizon if its price can ascend above the $22 mark.
Looking ahead, there are pivotal moments to watch for in Avalanche’s market journey. If it successfully breaks above the double top at $22.3, there’s potential for a significant surge, possibly reaching or surpassing the $25 level in the short term. However, a downturn below the $17 support level could signal a further decline, potentially leading to the next support level at $15.00.
The technical outlook for AVAX is currently displaying a bullish bias, with signals pointing towards an upsurge in its value. However, over the past 24 hours, the technical indicators are flashing a bearish trend in the short term, with the relative strength index (RSI) below the 50 level. The moving average convergence divergence (MACD) also indicates a bearish trend in the near term, with the MACD line below the signal line. However, these indicators should be viewed as short-term fluctuations, and market sentiment remains generally optimistic for Avalanche’s long-term outlook.
