AVAX has recently attracted attention with its intriguing price movements. According to Altcoin Sherpa’s analysis, AVAX, Avalanche blockchain’s token, is currently at a crossroads of market speculation and technical analysis. In a tweet post, he spotlighted a rebound at the .382 Fibonacci level.
Despite this bounce, the cryptocurrency analyst remains cautious, suggesting that $AVAX could see a further decline in value. A strategic acquisition below $30 is considered advantageous, indicating a watchful approach.
$AVAX: I suspect that a lot of these projects are going to bounce at key fib levels, #AVAX did at the .382. Still think this one trades a bit lower to be honest. nabbing sub $30 would be solid pic.twitter.com/whCEtQsqBH
— Altcoin Sherpa (@AltcoinSherpa) January 11, 2024
Significantly, the Fibonacci retracement tool has highlighted key levels where AVAX might experience resistance or support in his daily price chart analysis. For instance, the token found support at the 0.382 Fibonacci level, around $34.13 USDT. Consequently, this level has emerged as a potential turning point for AVAX. However, the overall trend suggests a cautious approach, as the token still hovers below the 0.236 level, around $40.35 USDT.
Moreover, the trading volume, standing at 4.202M AVAX, offers valuable insight into market sentiment. A high trading volume usually indicates strong interest and can validate price movements. In this case, the volume suggests that the market actively engages with AVAX at these levels.
Additionally, AVAX’s current price action shows a slight uptick. At the time of the analysis, the last traded price was around $34.15 USDT, representing a minor increase. This small change could signify the beginning of a recovery or temporary respite in a broader downtrend. The daily high and low, $34.45 and $32.85, further encapsulate this tight trading range.
Furthermore, the market’s behavior around the 0.236 Fibonacci level is critical. Acting as a consolidation point, this level indicates the market’s indecision. It reflects a struggle between continuing the downward trend and reversing it upwards. Hence, traders and investors closely monitor this level for clues about AVAX’s next move.
AVAX is at $38.93 per financial update, marking a 0.86% uptick over the last 24 hours. This modest uptick aligns with the observed market sentiment and technical indicators, underscoring the cautious optimism permeating the AVAX market.
