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- Avalanche has been in a long-term downtrend but looks likely to hit the $30 level soon.
- It may be difficult to achieve sustainable gains outside of that area and we may witness a correction and consolidation phase.
Avalanche [AVAX] Bitcoin price was trending higher on the lower timeframes. The drop to $20 was followed by a consolidation phase that lasted for about two weeks.
A Recent report Highlight the bullish enthusiasm behind the token.
Since August 16, the Avalanche cryptocurrency has gained just over 30% in value. Technical analysis shows that these gains may continue for a few more days.
Two sets of Fibonacci levels to tell the story of AVAX price action
Source: AVAX/USDT on TradingView
The May-June price decline from $41.8 to $23.51 was used to plot one set of Fibonacci levels (in yellow), while the decline from $33 to $17.29 was used to plot another set (in blue).
The recent decline has highlighted the $29.64 level as a major resistance level.
This coincides with the area where Avalanche cryptocurrency bounced off in April but turned into resistance in June. Apart from that, the $37.5 area is also an important resistance area.
The price move above $24 after testing the 23.6% extension level was encouraging in the short term. While it promises a move towards the $30 resistance level, traders should scale back any further bullish expectations.
The RSI was above +0.05 indicating strong buying pressure. The bullish momentum was reflected in the daily RSI and the price moved above the moving averages.
Evidence confirms that Avalanche’s goal is to reach $30 for the cryptocurrency
source: Highblock Capital
Is Your Investment Portfolio Green? Check AVAX Profit Calculator
The heat map shows liquidity concentration just below $28 and around the $30 level. Coupled with the momentum and demand for AVAX, the price is likely to move higher.
Magnetic liquidity areas attract prices, and if Bitcoin [BTC] If Avalanche decides to break above $66k, it could also see a sustained upside due to the bullish sentiment in the broader market.
Disclaimer: The information provided does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.
