- Avalanche was in a prolonged downtrend but seemed likely to reach the $30 level soon.
- Sustained gains outside that region may be difficult and may see a retracement and consolidation phase.
Avalanche [AVAX] showed a higher trend in the lower time frames. The price drop to $20 was followed by a consolidation phase that lasted almost two weeks.
A recent report highlighted the bullish enthusiasm behind the token.
Since August 16, Avalanche crypto is up just over 30%. Technical analysis showed that these gains could continue for a few more days.
Two sets of Fibonacci levels to tell the AVAX price action story
Source: AVAX/USDT on TradingView
The May and June price drop from $41.8 to $23.51 was used to chart a series of Fibonacci levels (yellow), while the drop from $33 to $17.29 was used to chart another series ( blue) map.
The more recent decline highlighted $29.64 as a key resistance level.
This coincided with an area where the Avalanche crypto emerged from in April but turned to resistance in June. Beyond that, the $37.5 area is also an important resistance zone.
The price move above $24 after testing the 23.6% extension level was encouraging in the short term. While it promised a move toward the $30 resistance, traders should curtail further bullish expectations.
The CMF was above +0.05, indicating strong buying pressure. The bullish momentum was reflected in the daily RSI and price movement above the moving averages.
Evidence confirms the $30 target for Avalanche crypto
Is your portfolio green? View the AVAX Profit Calculator
The liquidation heatmap showed a liquidity concentration just below $28 and around the $30 level. Combined with the momentum and demand for AVAX, it was likely that the price would move higher.
The magnetic liquidity zones attract prices, and as Bitcoin [BTC] decides to push past $66k, Avalanche could also see continued upside due to bullish market-wide sentiment.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer