Key Takeaways:
- AVAX’s price holds firm above short-term moving averages, indicating a bullish continuation.
- MACD crossover strengthens the case for further upside, with increasing buyer interest.
- RSI nearing the overbought zone suggests cautious optimism with possible minor pullbacks.
Avalanche (AVAX) has staged a convincing comeback after experiencing a dip to the $18.5 region earlier this week. The hourly chart reflects a transition from a bearish descent into a bullish structure, as AVAX now trades confidently above the 5MA, 10MA, and 20MA.
Such an overlap of moving averages indicates a strong upward momentum since all the shorter MAs have crossed the longer ones. The last hourly candles indicate that buying pressure remains enough to push prices up to $20.83.
The volume profile confirms this upward movement by indicating consistent green bars throughout the rally phase beginning June 6. The initial recovery from below $19 was gradual, but Avalanche caught momentum near the $19.50 level, which has now turned into a confirmed support zone.
Since then, price action has respected the 20MA, making it a dynamic floor. As long as AVAX remains above this level, the trend will remain intact.
MACD Flashes Bullish Continuation
Further confirmation of the bullish sentiment is provided by technical indicators. The MACD just crossed above the signal line after a period of consolidation, which indicates that buying strength has again increased.
More importantly, the histogram had previously dipped into negative territory but is now shifting back to positive bars, suggesting that momentum might pick up again shortly. This MACD crossover follows a slight retracement, implying that profit-taking recently made on Avalanche has been absorbed by the bulls.
With price still trading below the psychological $21 barrier, the increasingly tight distance between price and resistance could soon prompt a breakout attempt. Another successful move above $21 would then further open up its potential to be tested at higher levels, maybe around $21.50 or more.
Avalanche RSI Nears Overbought Zone
While momentum is just about bullish, the Relative Strength Index (RSI) is getting close to the 70 mark, which typically denotes overbought conditions. Avalanche isn’t in extreme territory yet, but the current reading above 65 indicates that a short-term pullback or consolidation might be seen before another upward movement.
Traders can watch for consolidation in the range of $20.5 to $21, where the market could just reset before it continues. A rejection at $21 would not be considered weakness but a normal pause within an otherwise healthy trend. As long as Avalanche stays above the $19.50 support, the bullish scenario stands, thanks to the moving average structure and MACD getting more robust.
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