Saturday, September 30, 2023

Avalanche Shows More Optimism But Can This Be A Price Reversal?

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Avalanche shows more optimism recently, displaying recovery on the charts as the altcoins brought home 4.8% gains so let’s read more today in our latest cryptocurrency news.

There was also a considerable daily gain with AVAX trading underneath the long-standing price floor. It is difficult for investors to look at the daily gains as a good enough reason to purchase the coin at the moment. The technical for the coin hasn’t suggested strong bullishness which could suggest that AVAX can be at the right place to buy at the time of writing. Avalanche shows more optimism after losing 8% of the market value in the past week which forced most investors to liquidate the asset and leave. Since AVAX broke below the long-term support area, this can act as a huge red flag for the investors.

Avalanche depicts low buying strength on the one day chart Source AVAXUSD on TradingView

The next solid area of support for AVAX was set at $20 and the coin traded around the current price level last year in August. Avalanche exchanged hands at $31 at the time of writing and the altcoin was trading largely at the price mark for a week now and revisited this same price point last year but the coin was then on an uptrend. The immediate resistance for the coin stood at $40 and a fall below the current price level could send AVAX close to the $20 support mark and failing to settle near this price point can bring aVAX near between $12 and $9.

According to the RSI, the indicator was bordering the oversold territory and until RSI manages to move above the half-line, it is too early to call for a price action reversal. As it now looks, the bears are in heavy control, and the -DI line was above the +DI mark showing major bearishness. The average directional index was close to the 50-Mark which meant the price action was strong with almost no signs of reversal.  On the daily chat, AVAX’s technical points towards a huge change in price direction at the time of writing. The Moving average Convergence Diverge showed a green signal bar above the half-line and the green bar above it means a buying signal which if it continues will mean a huge change in price momentum.

avalanche trading
Avalanche was trading at $31 on the one day chart Source AVAXUSD on TradingView

The parabolic SAR also showed a dot below the price candles which means a change in the price direction and if more dots are seen below this candlestick over the upcoming trading sessions, then AVAX could stage a recovery on the charts.

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