AVAX price rose over 50% and traded above the $40 level. Avalanche is now correcting gains, but the bulls could remain active near the $32 support zone.
- AVAX price quickly rose above the $30 and $40 levels against the US dollar.
- The price is trading above $30 and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support around $35.00 on the 4-hour chart of the AVAX/USD pair (Kraken data source).
- The pair could continue to rise if it remains above the $35 and $30 support levels.
AVAX price corrects lower
In recent days, Avalanche’s AVAX saw a strong rise above the $25 resistance zone. It gained more than 50% and broke many hurdles near $30. It even reached the $40 level before the bears appeared.
A new multi-month high was formed around $43.06 before the price started a downward correction, much like Bitcoin and Ethereum. There was a decline of 15% and the price traded below the USD 38 level. There was a move below the 23.6% Fib retracement level of the upward move from the $21.24 swing low to the $43.06 high.
AVAX price is still trading above $30 and the 100 simple moving average (4 hours). There is also a major bullish trendline forming with support around $35.00 on the 4-hour chart of AVAX/USD.
Source: AVAXUSD on TradingView.com
On the upside, immediate resistance is near the $38.00 zone. The next major resistance is forming near the $40.00 zone. If there is an upside break above the USD 38.00 and USD 40.00 levels, the price could rise by more than 10%. In the mentioned case, the price could steadily rise towards the $45 level.
Dips limited in avalanche?
If AVAX price fails to hold higher above the USD 38.00 or USD 40.00 levels, it could continue to decline. The immediate downside support is near the $35 trendline.
The key support is near the $32.00 zone or the 50% Fib retracement level of the upward move from the $21.24 swing low to the $43.06 high. A downside break below the USD 32.00 level could open the doors for a big decline towards USD 18.80. The next major support is near the $26.50 level and the 100 simple moving average (4 hours)
Technical indicators
4-hour MACD – The MACD for AVAX/USD is gaining momentum in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for AVAX/USD is now below the 50 level.
Major support levels – USD 35.00 and USD 32.00.
Major resistance levels – $38.00, $40.00 and $45.00.
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