- Avalanche price stalls two-day recovery, struggling with eight-month resistance.
- Upside break of seven-week resistance line, RSI recovery, and “Double Bottom” attract AVAX bulls.
- Several downside support levels stand tall to raise bars for short-term Avalanche sellers.
- A clear breakout of $15.00 can help AVAX aim for $16.80, but broad bearish bias holds as long as the Avalanche price stays below the 100-day SMA.
Avalanche (AVAX) price posts modest losses near $14.75 during its first downbeat day in three early Thursday. Still, the altcoin faces a two-week uptrend as it pokes a multi-month resistance line.
That said, the AVAX rebound takes clues from a “Double Bottom” bullish chart pattern surrounding $12.50-$12.55, along with upbeat conditions of the 14-day Relative Strength Index (RSI).
Furthermore, the quote’s early-week breakout of a seven-week resistance line, now support, joins upbeat trading volume and market capitalization (market cap) to validate the latest run-up.
According to Santiment, Avalanche’s daily trading volume seesaws near a two-week high surrounding $564.00 million, while the market cap retreats from a week’s top to $6.32 billion by press time.
Apart from an immediate $15.00 resistance, a slew of Simple Moving Average (SMA) and a resistance line from September stand tall to challenge the AVAX bulls.
Hence, the odds favoring Avalanche’s potential recovery to be a healthy consolidation, rather than a trend-change signal, are quite high. Let’s read the details.
Avalanche Price: Daily Chart Teases Buyers
Avalanche’s clear upside break of a descending resistance line from October 13, now support near $14.00, joins the RSI’s sustained rebound from the oversold limit of 30.00 to bolster recovery hopes.
However, a daily closing beyond the previous support line from April, close to the $15.00 threshold, becomes necessary for the AVAX bulls before they can approach an 11-week-old resistance line surrounding $16.50 and the 50-day SMA hurdle of $16.80.
In a case where the Avalanche price remains firmer past $16.80, a gradual run-up toward the $20.00 round figure, and then to the 200-day and the 100-day SMAs of $22.00 and $22.35, respectively, can’t be ruled out.
Still, the AVAX bears remain in the driver’s seat as long as the prices stay below the 100-day SMA hurdle of $22.35.
On the contrary, a daily closing beneath the $14.00 could defy the latest bullish breakout and drag prices to the monthly low surrounding $12.50.
Below that, the October 2023 peak surrounding $11.82, the $10.00 psychological magnet, and the altcoin’s all-time low of $8.64, marked in September 2023, could attract the Avalanche price.
Avalanche Price: Four-Hour Highlights “Double Bottom”
On the four-hour chart, Avalanche price portrays a two-week-old “Double Bottom” bullish chart formation, with the lows around $12.55-$12.50 and the breakout limit of $15.30.
That said, a downward-sloping resistance line from September 23, close to $15.00, guards immediate AVAX upside ahead of the aforementioned $15.30 resistance.
Beyond that, the 200-bar SMA of $15.45 acts as the final line of defense for Avalanche bears before handing over control to the bulls and directing them toward the daily chart’s higher levels.
It’s worth noting that the RSI conditions are strong enough to propel the AVAX price past the immediate hurdles.
Meanwhile, a downside break of $12.50 could trigger a fresh AVAX fall targeting deeper levels discussed on the daily chart.
Conclusion
Avalanche (AVAX) price faces a healthy consolidation, backed by bullish chart formation, recent breakouts, and upbeat RSI. However, a slew of technical hurdles stands tall to challenge the optimists amid a potential 75% yearly loss.
Also read: Cryptocurrency Weekly Price Prediction: Is BTC, ETH, and XRP’s Rebound Reliable?
