Avalanche Technical Analysis: Investors Chase for Higher Price as AVAX Dropped Below Crucial Support

Key Takeaways:

• The Avalanche(AVAX) price closed the previous day’s trade at $27.90 with a market capitalization of $7.40 billion and a circulating supply of 284,476,371.01 AVAX
• The AVAX price has flashed huge bullish signals and hence appears to be self-assured of the upcoming rally aiming to surge beyond $30 initially and later secure levels above $50 

Additional Read: Avax Price Prediction

Technical Analysis for August 2022

Avalanche price, since the beginning of July, maintained an incremental price action and diminished bearish impact to some extent. Currently, following the same strategy, AVAX price has breached above the immediate and crucial resistance at $27.95 and is attempting very hard to sustain above these levels. 

However, a correction below these levels appears imminent which may remain a short-lived one. 

As the asset accomplishes the retracement, a firm upswing may assist the price to reclaim the position above $28 initially and later above $30. Further, the Avalanche crypto is expected to rise high towards the essential resistance at around $36.87 but due to the lacking volume, it may follow an ascending consolidation. 

Therefore, until some significant buying volume is influx, the price may remain consolidated at around $32 to $34 by the end of the monthly trade.

Technical Analysis at a Glance

Avalanche price has dropped its volatility since the May 2022 crash and is constantly failing to regain its bullish momentum. Both the bulls & the bears do not appear to have locked their horns as the volatility remained pretty less along with the volume. Therefore, the price is expected to flow in the direction of the volume induced until the counterpart challenges. 

Impact of Crypto Crash on AVAX Price

The crypto crash has heavily impacted the Avalanche price as the asset registered a consecutive 10 bearish weekly closes since the beginning of April. As the bearish trend began since the asset reached its peak close to $150 during Q4 2021. This was further fueled by the crypto crash which ignited the LUNA-UST crisis, followed by various other events related to liquidity crisis & bankruptcy. 

At the same time, the Indian traders were imposed with 30% tax on crypto profits along with 1% TDS for every transaction. This came to be a nightmare as the entire Indian crypto space is badly impacted and hoping for a revision in the coming days. 

Technical Indicators & Pivot Levels

Pivot Levels

The beginning of the August monthly trade is pretty bullish and hence the asset appears to continue with the same momentum throughout the week. RSI in the short-term is swinging within the oversold region and hence displaying minor possibilities of a price drain. While MACD is pretty bullish along with most of the other indicators & hence the price plunge may be nullified very soon. 

While in the long-term, AVAX crypto price is extremely bearish with most of the indicators flashing strong sell signals. However, the strength of the rally is neutral and hence a reversal may be expected if buying pressure is mounted. Interestingly, the Ultimate Oscillator which warns the future price actions is bullish and hence the descending trend may not thrive for long.

Check latest AVAX INR Price, Charts, and Data.

Avalanche (AVAX) Technical Analysis for Short Term

Source: Tradingview

• The AVAX price is ranging within a bullish ascending triangle and with the recent price action is attempting to breakout from the upper resistance
• However, the price is distinct from the apex of the consolidation and hence a rejection appears imminent
• If in case, the price successfully raises above the resistance, then the asset could fly high above $30 to secure $32 levels
• Else if it gets rejected at the present levels, then the asset may correct and drop close to $26 or even lower 

Avalanche (AVAX) Technical Analysis for Long-Term

Source: Tradingview

• The Avalanche price in the HTF is trading at very crucial levels, testing one of the important resistance levels
• The price is attempting to slice through the upper resistance of the ascending parallel channel but at the same time experiencing huge upward pressure from the bears
• Therefore, the asset may reenter the channel and continue consolidating along the resistance levels for some more time until significant strength is accumulated
• However after gaining enough strength, the AVAX price may breakout and secure levels above $35 by the end of the monthly trade

Where & How to Buy Avalanche(AVAX)?

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