Avalanche price gained traction after the bulls defended the price above the recent support of $24 and resumed its recovery on the second day. At the time of writing, AVAX made a breakout above the previous day’s high and was up over 2.5%.
After the weakness in the broader market triggered a sharp selling in the AVAX, price action pivoted to bearish. However, the intraday recovery has added some relief for investors.
However, AVAX price recovery needs to last a bit longer in order to claim a bullish territory as the price currently hovers below the key EMAs.
There has been a significant development in the transaction volume which indicates the continuation of a recovery. Let’s analyze combining all the metrics and try to draw a clear picture of where Avalanche price could proceed next.
Avalanche price action: Volume & Volatility Analysis
The bears attempted for a breakdown below the recent support of $24 yesterday, however, the bulls made a comeback in the later session and price closed higher thus defending the support.
Moreover, the intraday movement reveals the domination of buyersheaded for a recovery.
Moreover, along with the price recovery, there has been a significant development in the transaction volume. The intraday transaction volume has dropped by nearly 40% and was at $322 Million a day. The drop in transaction volume reveals the waning interest of the sellers.
Moreover, the volume to market cap ratiowas 3.25% indicating low volatility in the crypto. It has a live market capitalization of $10.19 Billion and ranks 12th in the cryptoverse.
AVAX Price: Technical Analysis
From a technical standpoint the Avalanche price hovers below the key Exponential moving average of 20, 50 and 200 days indicating a strong bearish trend prevailing. Though the bulls have initiated a recovery, it needs to surpass the 200 day EMA in order to turn a bullish reversal.
On the higher side, the $33.5 level may act as a hurdle which if surpassed may validate a bullish reversal. On the lower side, the $24 level has been acting as the critical demand zone which if breached may trigger a panic selling in the crypto.
At the time of writing, the RSI line and 14 day SMA line have made a bullish crossover adding confirmation to a continued recovery. Both the lines have recovered from an oversold region indicating an improved sentiment.
Can AVAX Continue To Recover Or Fail?
Avalanche price surged 2.5% intraday today after defending the $24 support level indicating a recovery. Despite broader market sell-offs, AVAX price recovery has reassured investors. However, for a bullish reversal, the price must sustain above the key EMAs.
Currently,AVAX hovers below the 20, 50, and 200-day EMAs, signaling a bearish trend. Transaction volume has decreased by 40%, indicating decreased selling pressure.
Now, ifAVAX manages to surpass the $33.5 resistance, a bullish reversal could be confirmed. However, falling below $24 could lead to further sell-offs. The RSI and SMA lines suggest improving sentiment.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
