Avalanche (AVAX) has shown recovery on its chart. In the last 24 hours, the altcoin has gained 4.8%. Although it has posted significant daily gains, AVAX is trading below its long-term price levels.
It is difficult for investors to see only daily gains as a sufficient reason to buy the coin at this point in time. The technicals for the coin have not suggested a strong bullish trend which may suggest that AVAX could be a good buy at the time of writing.
Avalanche (AVAX) has lost 8% of its market cap in the past week. This forced many investors to liquidate and abandon the property. Since, AVAX broke below its long-term support area, this could act as a significant red flag for investors.
The next solid support area for AVAX was $20. The coin was trading around the current price level in the month of August a year ago.
Avalanche Price Analysis: One Day Chart
Avalanche (AVAX) was exchanging hands at $31 at the time of writing. The altcoin has been trading laterally at that price mark for almost a week. It saw this price mark again last year, however, as the coin was on an upward trajectory at the time.
As established earlier, the immediate resistance for the coin was $40. A decline below the current price level could send AVAX near the $20 support level. Failure to settle near the $20 mark could lead AVAX to anywhere between the $12 and $9 support levels.
technical analysis
Altcoin continues to show weakness on its charts. The technical outlook looks bearish as buyers are nowhere to be seen in the market. As the coin revisited its August, last year’s price level, AVAX continued to hold sellers in the market.
As per the Relative Strength Index, the indicator was in the range of the oversold mark. Unless the RSI manages to move above the half-line, it is too early to call this price action a reversal.
According to the Directional Movement Index, which reads the price direction, the bears are in control. The -DI line was above the +DI sign indicating a bearish trend. The Average Directional Index line (red) was near the 50-mark, this reading meant that price action was strong with fewer signs of a reversal.
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On the one-day chart, technicals for AVAX are pointing to a possible change in price direction at the time of writing. The Moving Average Convergence Diverge aka MACD displayed a green signal bar above the half-line.
A green signal bar above the half-line could mean a buy signal, if continuous buy signals are observed it could mean a change in price momentum.
Parabolic SAR also depicted a point below the price candles, which means a change in price direction. AVAX may stage a recovery on its chart if more points appear below the candlesticks in the upcoming trading sessions.
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