Avalanche (AVAX) has returned to the spotlight as traders monitor a technical setup that could determine its next major move. Crypto Hunter noted that AVAX is approaching an important breakout zone after spending months trading within a tight range.
According to the market analyst, AVAX will remain above key support levels as it moves towards key resistance levels. The trading volume will determine whether or not the buyers can exert their dominance.
In the weekly chart of AVAX on the KuCoin exchange, we can see that the token is under selling pressure as a result of rejection at $29.08.
Source: X
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Avalanche Weak Volume Keeps Recovery Uncertain
Following the drop, AVAX has maintained its position at a level below $10 for a lengthy period of consolidation. The movement in price is more subdued compared to previous times owing to reduced volatility.
Volume is indicating a careful picture. At the beginning of the decline, the level of selling went up considerably, which indicates a lot of bears were in play. In the course of the decline, both selling and buying decreased.
A decrease may be an indication of the onset of accumulation, but without a stronger buying interest, we cannot speak of recovery yet.
Technically speaking, $6-$7 becomes an essential area for support. Being above this level can assist in maintaining the sentiment, while being close to this zone at the end of the week can trigger more sales.
For buyers, getting back above the psychological barrier at $10 is necessary to go further up to $29.08.
New Accelerator Grants Aim to Grow Avalanche Ecosystem
Moving away from developments in terms of prices, we see that the Avalanche Foundation has introduced a new scheme known as Accelerator Grants via AvaxTeam1.
This is an initiative where developers will be funded up to $30,000 to build their projects. This follows the previous one, known as Mini Grants, whereby the foundation funded developers in gaming, infrastructure, development tools, and community applications.
$200 Long-Term Target Hinges on Support Hold
Another market analyst, THE FUDA, offered an Elliott Wave theory for the long term, stating that Avalanche may be nearing the end of the correction phase. The chart indicates that AVAX is at the end of the Wave (Y), having fallen since 2021, when it reached highs of over $145.
Source: X
The Fibonacci Support Zone of $5.70 – $4.64 is where the analysis sees AVAX reaching and completing its correction. AVAX is currently trading around $6.38 and will be heading towards the Zone.
If AVAX holds support and momentum returns, AVAX can launch a long-term upswing towards $200. However, a fall below $4.64 would invalidate the whole thesis.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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