Avalanche (AVAX) Approaches Key Demand Zone: Will $30 Be the Next Stop?

Avalanche has recently entered a key weekly demand zone, which has historically acted as strong support. Momentum indicators also suggest that bearish pressure is coming to an end, and the token is preparing itself for a strong breakout.

At the time of writing, the token is trading at $12.43, supported by a 24-hour trading volume of $321.45 million and a market capitalization of $5.34 billion. Its price has surged by 1.42% over the last 24 hours and 4.2% over the last week.

Source: CoinMarketCap

Also Read: Avalanche (AVAX) Price Holds Steady as Grayscale Advances Spot ETF Filing

AVAX Technicals Hints at Increasing Bullish Strength

Analysis of the chart reveals that the price is above the 20 and 50 EMAs, which is a trigger for a possible reversal. However, it is below the 100 and 200 EMAs, which indicates some pressure on it. Nonetheless, being above the 20 and 50 EMAs shows that there might be a bull trend if it manages to maintain these positions.

Source: TradingView

The RSI index of 57.09 puts it in a neutral area, but it has a positive MACD. The MACD indicator’s line is above the signal line, and its histogram is positive. This makes it a favorable time to buy. The 4-hour chart shows volatility in both positive and negative directions, which will push it higher after breaking above 12.60.

AVAX Enters Key Buy Zone: Is $30 the Next Target?

Nevertheless, the crypto analyst Crypto Pulse has shared that Avalanche (AVAX) is currently in a very important demand zone around which buyers have intervened in the past. This zone has proven to be a great support point because it has enabled successful bullish movements to take place. AVAX could see a relief rally if this zone is respected.

As long as the price is sustained above the demand level, traders can expect AVAX to test major resistance levels of $16, $21, and perhaps $30. These levels are highly significant and may be used as exit strategies for short-term traders or as regions for additional accumulation by traders who foresee a recovery in the market.

Source: Crypto Pulse

The bearish case will become true if AVAX fails to pass through the demand zone without issues on a weekly timescale and closes below the demand zone. Closing below the demand zone will be a clear indication of a shift in market sentiment, hence a fall in the value of AVAX.

Also Read: Avalanche (AVAX) Shows Short-Term Recovery Amid Descending Market Trend