AVAX price rose more than 50% and climbed above $22.50. The price may correct lower, but there may be more upside above $25.
- AVAX price is showing some positive signs above the $20 level against the US dollar.
- The price is trading above $22 and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support around $20.50 on the 4-hour chart of the AVAX/USD pair (Kraken data source).
- The pair could continue to rise if there is a clear move above the $24.50 and $25.00 resistance levels.
AVAX price doubles in value in a few days
After forming a base above the $10.00 level, Avalanche’s AVAX mounted a major rally, outperforming Bitcoin and Ethereum. There was a clear move above the $15 and $20 resistance levels.
The price rose more than 50% in recent days and even managed to overcome the resistance at USD 22.50. A new multi-week high was formed near $24.70 and the price is now consolidating gains. There was a small decline below the $22.50 level.
The price fell below the 23.6% Fib retracement level of the upward move from the $15.59 swing low to the $24.70 high. However, the bulls were active above $20.00.
AVAX price is now trading above $22.00 and the 100 simple moving average (4 hours). There is also a major bullish trendline forming with support around $20.50 on the 4-hour chart of the AVAX/USD pair. On the upside, immediate resistance is near the $24.50 zone.
Source: AVAXUSD on TradingView.com
The next major resistance is forming near the $25.00 zone. If there is an upside break above the USD 24.50 and USD 25.00 levels, the price could rise by more than 20%. In the mentioned case, the price could steadily rise towards the $30 level.
Dips limited in avalanche?
If AVAX price fails to hold higher above the USD 24.50 or USD 25.00 level, it could trigger a downside correction. The immediate downside support is near the $22.50 level.
The main support is near the $20.50 zone. A downward break below the USD 20.50 level could open the doors for another decline towards USD 18. The next major support is near the $15.50 level.
Technical indicators
4-hour MACD – The MACD for AVAX/USD is gaining momentum in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for AVAX/USD is now above the 50 level.
Major support levels – USD 22.50 and USD 20.50.
Major resistance levels – $24.50, $25.00 and $30.00.