AVAX has shown strong resilience in recent market volatility, with prices oscillating around the $14 mark. Interestingly, the latest liquidation level heat map shows that a large amount of liquidity has accumulated below the $14 mark. This position happens to be exactly in line with the HTF resistance level of $13.9, showing a key support level.
At this juncture, market participants should pay close attention to AVAX’s price action, especially at the $14 mark. If the price is able to break through this resistance level, then it could spark a new leg up. However, if the price fails to break through the resistance level, it could result in a further decline.
AVAX has a strong bullish structure on both the four-hour and daily charts.
It is likely to move to $13.9 soon and a rally could see it surpass $15 in the coming weeks.
Avalanche AVAX has been gaining a lot of attention for its performance, with the sharp gains on the price chart over the past two weeks making investors excited about its future. Avalanche was able to hold onto its previous range lows and has now broken through the $11 support level.
However, there have been several recent events that have had an impact on Avalanche’s market performance. First, the news that SnowTrace shut down the browser service supported by Etherscan has worried investors. Users must take some steps to transition to alternative tools, which may lead to a temporary loss of some investors.
Secondly, Stars Arena, a project on Avalanche, also became the focus of news after announcing the resignation of its CEO. This personnel change may cause investors to worry about the project, which will have an impact on Avalanche's market performance.
Finally, an October 7 hack resulted in nearly $3 million in losses. Although Avalanche managed to remain stable during this attack, investors may still be wary of security concerns.
In general, although the price of Avalanche AVAX shows an upward trend, investors still need to pay attention to various recent events and invest cautiously. At the same time, Avalanche also needs to strengthen its security construction to maintain investor confidence.
AVAX to move higher after positive reaction at former resistance
Since the end of August, AVAX has been trading in a range of $8.72 to $10.92. The low of the range at $8.7 was tested again in the past two weeks and held. This, coupled with Bitcoin’s rise from $26,700, provided the impetus for the price to break through the $11 resistance level.
At the time of writing, the market structure on the daily chart is bullish. The relative strength index (RSI) reflects strong upward momentum with a reading of 66. The OBV has also been trending strongly upward over the past two weeks, indicating heavy buying volume.
The breakout occurred on high trading volumes. Moreover, $11 and $11.6 were retested as support levels on lower timeframes. This suggests that AVAX could rise to the next major resistance level at $13.9 and possibly higher.
If the bulls can break the $14 wall, they can keep the party going
First, let’s take a look at the Liquidation Levels heatmap above. This chart shows us that there is a lot of liquidity below the $14 mark. This seems to align very well with the HTF resistance level of $13.9. The resistance level is a critical price level that, if broken, could spark a significant price increase.
Additionally, the next major liquidity pool is located at $14.5 and $16.15. Liquidity attracts price, so if the buying pressure continues, AVAX will most likely climb to these targets. If this happens, then investors will have the opportunity to capture more profits.
For traders, the $13.9, $14.5, and $16.15 levels can be used to book profits and re-establish long positions. This can help lock in gains during market volatility and re-enter the market when prices recover.
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