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Avalanche remains one of the leading smart contract platforms
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The local coin was at a low of $14, but has doubled in value since then
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$30. AVAX trades at $23 after the latest correction since touching
Avalanche AVAX/USD is struggling with the $21 support level, and the bulls are looking to win. Nothing is certain for sure, as we largely remain in a bear crypto market. Nevertheless, bulls should remain optimistic about a possible short-term rally.
Avalanche remains one of the top cryptocurrencies despite its recent crash. Local tokens can be staked and deployed as a unit for transactions. The blockchain protocol became popular in 2021 at the height of the smart contract boom. AVAX climbed above $150, ranking among the leading smart contract platforms.
A crypto crash and LUNA-induced volatility gripped AVAX this year, bringing it to a low of $14. Price is recovering, doubling in August before correction. While AVAX was trading at $23 at press time, bullish signals are developing. We anticipate a short-term price rise towards the $27 resistance area.
AVAX remains in consolidation zone after latest correction
Source – TradingView
Technical analysis is showing that AVAX is slowly recovering from the $21 support level. The cryptocurrency has formed several inside bars in support. Inside bars indicate indecision and potential bear exhaustion after the latest correction. A breakout above the inside bar would confirm a bullish reversal.
On the momentum indicator, there are further bullish signals for AVAX. Although the MACD indicator remains in bear territory, weakness is turning lower. This suggests that AVAX is strongly rejecting any further downside below $21.
closing thoughts
A bull case for AVAX would be confirmed by a breakout of the internal bar pattern. The coin may still face resistance at $27.