Avalanche (AVAX) is showing signs of potential upside movement as it forms a distinct bullish pattern on its short-term chart. AVAX is making higher lows against a significant resistance level, indicating considerable buying interest in the cryptocurrency. A decisive breakout above this level could lead to more upside price movement in the short term.
At the time of writing, Avalanche (AVAX) is trading at $12.39, with a 24-hour trading volume of $348 million and a market capitalization of $5.32 billion. The token saw a slight decline of 0.68% over the past day, reflecting minor market hesitation.
Avalanche (AVAX) Approaches Key Resistance Level
However, based on technical indications, AVAX appears to be making preparations for a potential breakout to the upside. A prominent crypto analyst, Alpha Crypto Signal, recently identified that AVAX is establishing a prominent ascending triangle in the 4-hour chart. As depicted in the visual, higher lows are attempting to reach a flat resistance area at $12.45-$12.55.
But if AVAX is successful in breaking through and closing above the horizontal resistance level, the gates could open for a further advance. The first target area in this advance could be set between $12.90 and $13.30, although significantly higher gains are also a possibility if the purchase volume surges. As long as AVAX is above the rising trend line, this bullish pattern will be deemed intact.
Investors are expected to focus on the $12.45-$12.55 resistance level as a strong breakthrough could signal a new short-term momentum for AVAX.
Also Read | Avalanche (AVAX) Approaches Key Demand Zone: Will $30 Be the Next Stop?
AVAX Weekly Momentum Still Weak
Avalanche’s RSI is currently close to 34.6, which is below the midline at 50 and reflects weak buying momentum. Additionally, the RSI is still below its signal line at 41.3, which is an indication of bearish pressure. The market is trading significantly lower than the MA Ribbon averages of 20.8, 21.8, 26.1, and 28.2.
The MACD is also flashing a series of bearish signals, given the fact that the MACD line is close to -2.16 below the signal line, which is at -1.05. The histogram is also in the negative zone, showing a series of downside moments.
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