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Avalanche (AVAX) is showcasing strength near a pivotal resistance level at $27, amidst technical momentum and increased network activity. Is an explosion imminent?
📊 Quick market overview:
Current price: ~ $24.80
RSI: Approaching 74 (overbought)
Daily transactions: Exceeded 20 million transactions
Strong catalysts: Integration with Lynq and interest from FIFA enhance the network's credibility
🧭 Technical Analysis:
Critical resistance: $27 (tested several times)
Bullish pattern: Breakout from a descending channel and symmetrical triangle
Supporting indicators: MACD bullish, CMF shows accumulation, RSI in short-term overbought area
🎯 Important Levels:
The area of $22.60 – $23.00 is considered strong support and a suitable buying opportunity in case the price retraces.
The current range of $24.00 – $24.80 reflects stable volatility awaiting resolution.
If the price successfully breaks the key resistance at $27.00 with a clear close, we may witness a rally towards targets ranging from $35 to $43.
However, in case of failure and rejection from this level, the price may drop back towards deeper support between $20 and $22, which could represent a potential rebound area.
📌 Trading Plan:
Moderate risk: Buy from $24–25, stop loss below $23
Conservative approach: Wait for a 4-hour candle close above $27 with strong volume
Take profits: Gradually at $27, then $35, $40–43
✅ Why might AVAX rise?
Clear technical breakout supported by indicators
Record high in network usage
Institutional partnerships enhance investor confidence
Support from capital inflow towards ecosystem coins
📝 Summary:
AVAX stands on the brink of critical resistance.
A breakout above $27 may open the door towards $35–43, while failure may bring it back to the $22–24 range.
🎯 Watch for a close above $27, trading volume, and ecosystem developments.
What about you? Do you prefer buying with the breakout, or taking advantage of retracements? Share your views 👇