Struggling with a critical resistance level, can Avalanche (AVAX) rise to $40?
Avalanche (AVAX) is currently trading at a critical support level around $24. Technical indicators indicate that the popular altcoin is in a bearish trend but signals a possible reversal. Analysts think that buying pressure will increase if AVAX rises above $28. Despite its high volatility, if AVAX can surpass $28, it could rise as high as $40 in the short term, according to crypto experts.
Downtrend continues for AVAX
AVAX is still in a downtrend and its price action is below the 20-day simple moving average (SMA) at $26.81. Currently, AVAX is trading at $24.15 and approaching the lower Bollinger band at $23.98, indicating bearish pressure. If the price breaks above the 20-day SMA, this could be a bullish signal.
The Relative Strength Index (RSI) is currently at 37.54, indicating a weak downtrend and generally close to the oversold zone below the 30 level. If the RSI rises above the 50 level, this could indicate a positive trend. Currently, AVAX’s support and resistance levels are seen as the 20-day SMA at $26.81 and the upper Bollinger band at $29.63, respectively, which may limit the price’s upside movement.
What do analysts think about the Avalanche?
An analyst known as Ak47 on the X (Twitter) platform suggested that AVAX’s consolidation around $24 could be preparing for the next upward move. $28 is an important resistance level for the popular altcoin. A breakout of the price above this level could trigger a rise towards $40.
The analyst stated that the $40 level has been tested before and sees this level as a profit-taking point. In the charts, the analyst emphasizes that a downward triangle formation has formed and the importance of an upward break.
If AVAX remains above the $24 level and shows an upward trend, $40 can be targeted with an upward break of this formation. However, if the price fails to break the $28 resistance, there are chances of a pullback below $24.
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