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HomeNewsAvalanche (AVAX) Smashes Through $40: Experts Weigh In on What's Ahead

Avalanche (AVAX) Smashes Through $40: Experts Weigh In on What’s Ahead

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  • AVAX price broke above $40, reflecting a rise after validating a long-term horizontal support zone.
  • A rejection in the $40 area and breakout of the channel could lead AVAX to fall towards support at $33.

Avalanche (AVAX) price has broken above $40 on Feb. 10, following a rally over the past 20 trading days. This advance has led the price to bounce off a long-term horizontal support zone, while still trading within a shorter-term resistance level.

AVAXUSDT_2024-02-13_06-55-19
AVAX/USD Weekly Chart. Source: TradingView

Weekly technical analysis shows that the price of AVAX has moved higher since January 22, validating a horizontal area as support. This area had acted as resistance since May 2022. Despite the advance, the price has not broken above the 2023 high.

AVAXUSDT_2024-02-13_06-58-37
AVAX/USD Weekly Chart. Source: TradingView

The weekly Relative Strength Index (RSI) shows mixed readings. Traders use the RSI to identify overbought or oversold conditions. Although the indicator is above 50, it has declined over the past two months, as well as crossing below overbought territory without recovering.

On the daily time frame, the future direction of AVAX is not confirmed due to mixed price action. The advance since January 22 has occurred within an ascending parallel channel, which generally encloses corrective moves.

On February 10, the channel resistance line rejected AVAX price at the $40 level. However, the daily RSI shows a bullish reading, moving above 50 and showing an uptrend.

It has been suggested that the price of AVAX will follow SOL in case the latter experiences a rise. If $SOL goes up, $AVAX will follow. Muscle memory, ImmortalCrypto expressed in a tweet.

AVAX/SOL via Coinmarketcap

Reaction to the $40 area is key to determining the future direction of AVAX. A successful breakout could lead to a 23% rise toward the 2023 high at $50. Conversely, a rejection in this area and channel breakout could result in a 16% drop toward the nearest support at $33.

At press time AVAX is trading $41

 

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628
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