Avalanche (AVAX) Price Analysis: Bullish Momentum Continues to Strengthen
The recent trading activity of Avalanche (AVAX) has showcased a strong bullish momentum as the altcoin has been trading within an ascending channel since August 6. This positive trend comes after a market downturn that led to significant liquidations of leveraged positions.
Positive Signs of Recovery
As AVAX continues to trade within an ascending channel, with a clear upper resistance line and lower support line, the market sentiment remains bullish. The increasing buying pressure has pushed the coin’s price higher, signaling a potential upward trend.
The MACD indicator for AVAX has shown a significant surge in buying momentum, with the MACD line crossing above the signal line on August 17. This bullish crossover suggests a shift from bearish to bullish momentum, indicating a possible price rebound.
Additionally, positive funding rates across exchanges further support the optimistic outlook for AVAX. These rates indicate a high demand for long positions, showcasing the growing confidence among traders in the coin’s potential for price appreciation.
Challenges Ahead
Despite the positive indicators, AVAX faces certain challenges that could limit its upside potential. The coin’s relative strength index (RSI) is currently below the neutral level of 50, signaling more selling pressure than buying pressure.
Furthermore, the Chaikin Money Flow (CMF) remains negative, indicating that the ongoing sell-off has not been fully offset by buying activity. These factors suggest that AVAX’s bullish momentum may face resistance in the near term.
If selling pressure increases, AVAX could break below its current support level and retest previous lows. However, sustained buying activity could propel the coin above current levels, with the potential to reach $28.64.
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