AVAX is setting up to flip a key resistance into local support which could see the altcoin begin a new bull rally.
- The token began the weekend with a 4% surge, helping recover part of its weekly losses with the 14th ranked coin posting a plunge of more than 10%.
Avalanche’s AVAX is setting up to go on a parabolic rally following a recent correction. A breakout is contingent on the altcoin flipping a key resistance and turning it into support as it forges a long-term bullish path. The 12th-ranked cryptocurrency which enjoys a market cap of a little over $17.8 billion, has in recent weeks come under great bearish pressure, signaling a decrease in investor interest.
Data from the last 7 days shows that AVAX has reached a high of $54.32 and subsequently dropped to a low of $44.23. While the current price shows a healthy rebound, some experts have warned of a potential drop to the $36 low. At the time of writing, AVAX is trading at $47 after a 5% surge in the last 24 hours. However, the altcoin is still down by more than 11% in the last 7 days.
The drop comes as no surprise with a correction perfectly in line after a very bullish March for the altcoin. Data shows that AVAX delivered gains of nearly 60% before taking a dip.
While bulls are keen to defend the $40 lower support, they are eyeing the $50 resistance. Another key resistance is $55, this is a key resistance that needs to be flipped into support if bulls have a chance of reaching yearly highs.
Technicals flashed red for optimistic investors (bulls). The RSI plunged to 35, indicating strong downward pressure (bearish momentum). Capital flight intensified, with the CMF dropping to -0.18. A key support level of $50 became a tipping point. Once breached, a wave of selling (liquidation cascade) drove prices even lower.
CoinCodex offers a bullish forecast for AVAX, predicting a potential surge to $180 for AVAX by the beginning of May 2024. As CNF reported, Rekt Capital stated that AVAX’s decline from the $65-$70 price range over the last two weeks presents a buying opportunity for long-term investors. The analyst calls this price drop a “healthy dip” which could push the token price back to its previous highs.
Avalanche is touted as one of the most bullish projects in 2024. Bolstering its outlook, the Avalanche network recently announced a strategic collaboration with blockchain platform Chainlink, as reported by Crypto News Flash. Furthermore, the altcoin last month saw crypto exchange Binance launch perpetual contracts for the AVAX altcoin on its futures platform.
