AVAX Bulls Push Price to $10 Resistance; Is a Breakout Imminent?

Avalanche (AVAX) has been on a remarkable, bullish streak over the past week, with traders closely monitoring its movements as it approaches the critical $10 resistance level. This surge in AVAX’s price could be attributed to the overall positive sentiment prevailing in the cryptocurrency market, driven mainly by Bitcoin’s impressive performance.

When writing, the live Avalanche price was above $10.15, accompanied by a 24-hour trading volume of $200,029,709. AVAX has experienced a 4.10% increase in the past 24 hours alone, signaling a substantial upward momentum.

One of the standout achievements for AVAX is its successful clearance of the psychological $10 level. This milestone was marked by completing a daily candlestick close above $10, establishing a crucial accumulation zone ranging from $9.23 to $9.84. This zone offers an enticing opportunity for sidelined buyers, potentially triggering a notable 15% bounce towards the intermediate hurdle at $11.38.

For traders eyeing substantial profits, the ultimate target lies at $12.29, which coincides with the midpoint of the sharp 46% decline AVAX experienced between July 14 and September 25. In a highly optimistic scenario, AVAX’s price could reach $13.17 and $13.80, representing key take-profit levels.

Adding to the optimism, the Open Interest has surged by $20 million in response to AVAX’s rapid gains. This substantial increase in Open Interest indicates a growing bullish euphoria, with buyers enthusiastically chasing after green candles. Furthermore, the positive funding rate and the rising spot Cumulative Volume Delta (CVD) signal robust demand for the asset.

Given the prevailing bullish sentiment, shorting AVAX may appear excessively risky. While a pullback to $9.5 in search of liquidity is plausible, a complete retracement of the rally seems improbable, given the vigorous bidding activity. Consequently, traders are advised to exercise caution and wait for a breakout above the $10.16 level, followed by a retest, as a potential entry point for long positions. The primary objective for these traders would be to target the formidable $11.2 resistance level.

AVAX’s recent bullish surge and its successful breach of the $10 resistance level have captured the attention of crypto traders worldwide. As the cryptocurrency market continues to exhibit positive momentum, AVAX’s price trajectory remains a focal point for investors looking for lucrative opportunities. Nevertheless, traders must remain vigilant and strategically plan their moves to anticipate further price developments in the coming days.